Rallies are born from a multitude of positives coupled with a lack of negatives, Jim Cramer reminded his Mad Money viewers Tuesday. That's why he was prepared with a list of 12 positives that helped spur today's big upswing.
First up was copper, which is breaking out to new three-year highs. Cramer said that's significant because copper is used to build things. Next up, Europe. When Europe does well, the U.S. markets seem to do well, and vice versa.
Third, interest rates were up slightly and talk of a December rate hike is back on the table. Fourth, there are rumblings from Congressional leaders that the debt ceiling will be raised and the U.S. won't default on its debt.
Fifth on Cramer's list was defense, after President Trump recommitted to winning in Afghanistan. Then there's the correction we just had in the S&P 500, which has taken some of the risk out of the markets.
Still other reasons for the rally included positive comments from Macy's Inc. (M) - Get Report , which made that stock bounce 4.5%. That was followed by the data-center stocks, which continue to rally, as do numbers 9, 10 and 11 on Cramer's list, non-FANG tech, Apple Inc. (AAPL) - Get Report and growth stocks like Starbucks Corp. (SBUX) - Get Report and McDonald's Corp. (MCD) - Get Report .
Cramer and the AAP team point out that with stocks sharply higher, three names in their portfolio have outpaced the broader market. Get in on the conversation with a free trial subscription to Action Alerts PLUS.
Executive Decision: Salesforce.com
For his "Executive Decision" segment, Cramer did his quarterly check-in with Marc Benioff, chairman and CEO of Salesforce.com (CRM) - Get Report , which just posted a penny-a-share earnings beat with a 26% increase in revenues and raised its full-year earnings guidance.
Benioff said this quarter was the best ever for Salesforce, with over $15 billion in deferred revenues on the books. Salesforce continues to widen the gap between its rivals Oracle (ORCL) - Get Report and SAP (SAP) - Get Report , Benioff added, which is why they're forecasting 24% revenue growth.
The client relationship management (CRM) software market is the most important part of enterprise software, Benioff said, and is ramping up to a $1 trillion opportunity.
Benioff also touted Einstein, his company's artificial intelligence platform, saying it's the next big trend behind the cloud and mobility.
How to Value Oil Stocks
We're all flying blind when it comes to valuing the oil stocks, Cramer told viewers. Many of the oil producers have seen their shares in plunge in recent weeks, sometimes falling to lows not seen since Jan 2016, when oil was $20 a barrel lower than where it trades today.
It was once thought that oil companies could thrive with oil below $45 a barrel, but after this quarter, many investors now realize that these companies will have to spend more to produce less at these prices.
So what does that mean for BHP Billiton (BHP) - Get Report , which has decided to unload $10 billion in shale assets it purchased at the height of the oil boom six years ago? Cramer said this asset sale will set the tone for the markets. A bidding war over $10 billion would see the oil stocks soar, but a price below $7 billion will likely send this group sharply lower.
Over on Real Money, Cramer says that when you look at those shale fields that BHP bought and the prices they paid, you have to wonder whether someone just lost his mind. Get Cramer's insights with a free trial subscription to Real Money.
Off the Charts: Netflix
Moreno first looked at a daily chart of all of the FANG stocks, Facebook (FB) - Get Report , Amazon.com (AMZN) - Get Report , Netflix and Alphabet (GOOGL) - Get Report , noting that Netflix has nearly doubled the gains of the next largest competitor, Facebook.
Next, Moreno compared that performance to that of the Nasdaq 100, noting that the index is market-cap weighted, which means that the larger Netflix gets, the more influence it has on the index.
Given the weakness in Netflix over the past month, Moreno worried that investors could begin to panic and sell Netflix, which would have a cascading effect on the rest of the index.
Executive Decision: Cardinal Health
In his second "Executive Decision" segment, Cramer sat down with George Barrett, chairman and CEO of Cardinal Health (CAH) - Get Report , a stock which is down 9% for the year, after falling more than 20% in 2016. Shares of Cardinal currently yield 2.9%.
Barrett described his company as the "largest company you've never heard of." It distributes drugs and medical supplies to 80% of hospitals and 60% of all pharmacies. He said Cardinal has been diversifying their portfolio of offerings to become even more of a critical force in the healthcare system and become less susceptible to swings like those that caused weakness this quarter.
When asked about that weakness, Barrett explained that they've seen cycles in generic drugs before, but this time, those swings were bigger than expected. Looking toward 2019 and beyond, however, Cardinal sees significant growth and market outperformance.
When asked about healthcare reforms in Washington, Barrett said he sees Cardinal as being on the right side of the trends toward more efficient care that gets delivered in the right way at the right facilities.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had positions in AAPL, SBUX, FB, GOOGL.