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."
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.
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