The market started strong with a 130-point surge, Jim Cramer said on his
"RealMoney" radio show Wednesday, as expanding bearish sentiment set stocks up for a bounce.
Traders are in the midst of a rally caused by the fact that there was too much pessimism and too many bears for too long, he said.
Cramer has a few indicators which he uses to measure bears. One such indicator is an oscillator, he said. This measures the buying and selling pressure of the market. When the market is oversold, which it was, it's like a compressed spring and is bound to bounce, he said.
Another indicator Cramer uses is a bull/bear ratio, which is the compilation of all the views of people who write about the market. Lately there has been too much pessimism, which is good for the market, he said.
The fundamentals of the companies in the market are bullish, Cramer said. For example,
just reported a number that is "beautiful," and it is a "smoking company," he said.
The fact that FedEx is doing well tells Cramer that everything the company touches must also be doing well, such as the retail sector. In addition, as a leading transportation company, FedEx ignites the financial sector as well, he said.
is a prime financial, according to Cramer.
CEO and chairman, was on Cramer's "Mad Money" TV show on Tuesday, and he also reported great numbers for his company. This tells us that people are still going out to eat despite the high gas prices, Cramer said.
People are being too negative, Cramer said. On Wednesday, Darden is up two points, Morgan Stanley is up 2.5 points and FedEx is up five points. "This is encouraging," 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
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.