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The only reason

Amazon's

(AMZN) - Get Amazon.com, Inc. Report

stock jumped higher Tuesday is because people were betting against it, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

"Yesterday Amazon reported that its profits slipped by 37%, and overnight the stock jumped up 10%," he said. "It's things like Amazon bouncing after an ugly quarter that makes the market so unfathomable to understand."

But it all really does make sense, Cramer said. People who hated Amazon were "forced to love it" because it had a better-than-expected quarter.

Amazon's bounce "was caused by short covering," he explained. "It went up because people were looking for a big miss."

Market players that were expecting it to miss its quarter again and were shorting the stock, got squeezed when Amazon didn't miss it, and thus they had to buy the stock, Cramer said.

"This means you got lucky," he said. "Long term, I stand by my Amazon position. I believe it will get buried."

While the company did guide up its revenue, it didn't guide up its fourth-quarter profit, Cramer went on to say. Revenue isn't the issue, he said, shrinking profits are more important here.

Amazon is a victim of its own growth and its management isn't focused on the company. It is "starved for growth," Cramer said. "It's trying to become the Internet's

Wal-Mart

(WMT) - Get Walmart Inc. Report

and is just too big."

He believes it is still "way too expensive" and doesn't have any good ideas to expand.

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Amazon bounced because too many people hated it, and it got lucky. But the long-term story for it doesn't look promising, he said. "People shouldn't go near it."

Am I Diversified?

In the "Am I Diversified?" segment of the show, Cramer's first caller held the following five stocks in his portfolio:

Cramer said the caller must be a "shrewd viewer of the show" because all of these stocks have been heavily recommended by him. He called the portfolio "completely and utterly diversified."

The second caller owned the following five stocks:

This is another totally diversified portfolio, Cramer said, though he added Citigroup is not his favorite financial stock.

Cramer's third caller named the following five stocks:

Image placeholder title

Because the portfolio included three financial stocks, Cramer said it was not diversified. He advised selling Citigroup and Wachovia and getting into a defense stock and an industrial stock instead.

On the Brinker

"Tonight's show is about taking the insanity out of the market" and making it sensible to people, Cramer said.

Like Amazon,

Brinker International's

(EAT) - Get Brinker International, Inc. Report

stock also acted irrationally

after earnings, he said.

"The stock jumped almost seven points yesterday on a declining same-store sales number," Cramer said. In casual dining, he said, the one thing that matters in regards to a stock's success is same-store sales.

Although Cramer agrees that the stock's move might not make sense, Brinker actually "beat the estimates and the expectations," he said. "People expected even bigger declines from Brinker, and that's why it went up."

When it went up by such a big number, Cramer originally thought it was because of short-covering, but not anymore. In fact, with people spending more money on casual dining, he believes Brinker is a buy right now.

The company was confident and "reported a hold-your-hand quarter," he said.

"The fundamental difference between Amazon and Brinker is Brinker isn't a growth story," Cramer went on to say. "It's not valued as a growth stock."

Brinker has "accelerated growth" and trades at 17 times forward earnings, he said. "Even after this jump, Brinker is still very cheap."

And unlike Amazon, it has a multiyear story to tell, "which justifies it as a buy right now," Cramer said. The company is on a cost-cutting mission, which is not hard to accomplish. Brinker is also turning its menus around and improving its free cash flow, which might go into the company's buyback program, Cramer said.

Mad Mail

In the show's "Mad Mail" segment, Cramer told a viewer he does not regard

Sears

(SHLD)

, which he owns for his

Action Alerts PLUS charitable trust, as a real estate play, but instead thinks of it as a cash-flow story.

"I believe it is going much higher because of the deployment of the cash flow, not because of the sale of real estate," he said.

Lightning Round

Cramer was bullish on

Aircastle

(AYR) - Get Aircastle Limited Report

,

IntraLase

(ILSE)

,

Palomar Medical

(PMTI)

,

Brocade Communications

(BRCD)

,

TD Ameritrade

(AMTD) - Get TD Ameritrade Holding Corporation Report

,

Gilead Sciences

(GILD) - Get Gilead Sciences, Inc. (GILD) Report

,

Ford

(F) - Get Ford Motor Company Report

,

General Motors

(GM) - Get General Motors Company (GM) Report

,

Halliburton

(HAL) - Get Halliburton Company (HAL) Report

,

EuroZinc Mining

(EZM) - Get WisdomTree U.S. MidCap Fund Report

,

Terex

(TEX) - Get Terex Corporation Report

,

Caterpillar

(CAT) - Get Caterpillar Inc. Report

and

NuVasive

(NUVA) - Get NuVasive, Inc. Report

.

Cramer was bearish on

Brightpoint

(CELL)

,

OraSure Technologies

(OSUR) - Get OraSure Technologies, Inc. Report

,

Bronco Drilling

(BRNC)

and

Joy Global

(JOYG)

.

For more of Cramer's insights during the most recent Lightning Round,

click here.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

At the time of publication, Cramer was long Altria, Halliburton and Sears Holdings.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.