Cramer says everything ran in retail after Macy's (M) earnings report because investors realized consumers were doing better, gasoline prices were declining, the refinance market got hot again, and employment was good.
Cramer reasons that when Home Depot reports a good number and the stock declines, it means people are looking for holes in the story. Some looked at online numbers, but those were solid. Others thought the consumer was pulling back, but Cramer disagrees with this.
He says all that is happening here is the stock is pulling back because people are selling the news, which is the way it has always been in a bull market. Cramer encourages investors not to out-think the situation and tells them to let the stock settle before jumping into it. The stock ran from the $70 range into the mid-$90 range, so he says it's perfectly reasonable that it would take a breather.
Cramer adds he is worried about Target (TGT) , however, because the company is not executing all that well yet and that stock has also run quite a bit.
Home Depot stock was down 1.85% to $96.22 at 12:36 p.m.