RealMoney Radio: Back to the Futures

Cramer says that in the old days, you couldn't move the markets with futures, no matter what.
Author:
Publish date:

People cannot win unless they stay in the stock market game, Jim Cramer said on his

"RealMoney" radio show Wednesday.

On Tuesday there was an "unbelievable surge" in the market due to one player that came in with $500 million and bought a ton of stock futures, he said.

The fact that one person was able to come in and move the market tells Cramer there is not a lot of stock for sale. Maybe the investor came in because he needed the market higher or decided to cover a short, Cramer said.

Either way, the lack of supply has allowed big buyers to come in and move the market now, whereas before there was plenty of supply, and people were not able to do this, Cramer said.

There is not a lot of supply because of the high level of company buybacks, he said.

"I am just amazed at how much stock is being taken out. And it's causing the market to rally," he said. "You need to be in to win."

D.R. Horton

(DHI) - Get Report

is going higher today, but if people listen to the company's conference call they will realize it's not because D.R. Horton has a better-than-expected quarter, Cramer said.

The actual reason it's moving up, "and the reason all of the homebuilders have bids underneath, is the spectacularly easy sale of land that it's been sitting on," he explained. The company's home inventory and inventory of excess land is being worked off.

Most homebuilders have too many homes and too much land, which has been the bears' major case. Now both inventories are being cut, Cramer said.

A bottom is in the process of being put into the homebuilders, he said.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.