Although every headline about the upbeat market on Thursday said it was triggered by Ben Bernanke, the
's chairman, this is not true, Jim Cramer said on his
"RealMoney" radio show Friday.
Short-sellers are what caused the rally, he said.
"Bernanke spoke at 2 p.m.
EDT yesterday," he said. "The market was already up by then." He is not the reason the market rebounded, he said.
There is a big group of people that bet against the market every day called short-sellers; they want the market to be lower, and sometimes they get it right, Cramer said. In fact, they were right nine straight days while the market was down.
Then individual companies like
reported good news. This caused the market to begin to spring back, Cramer said.
"People who had been coining money at your expense were pressing their bets", he said. "At the top of the market yesterday, the short-sellers came in and bought back stock and that's what caused the rally."
Now what people are doing is becoming more defensive, he said. Cramer advised his listeners to start buying companies that are doing well, even when the economy is not doing well.
Take a look at your portfolio, Cramer said. If you made a lot of money yesterday, if you experienced a 4% or 5% gain yesterday, you are doing something wrong, he said. If you made a lot of money it mean you are being too risky, he said, in which case you need to scale back the risk.
Be diversified, Cramer advised. Take a little off the table and redeploy it, he said, maybe into a drug stock like
or a beverage stock like
"Make these moves when the market is strong," he said. "We're back to full price, this is when I like to sell."
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.