Jim Cramer didn't count on President Donald Trump showing up on Tuesday night in front of Congress with a tone that sounded … presidential.
Apparently, Wall Street didn't, either.
"The impossible 24 hours ago now seems downright likely today, which is why we put on such a magnificent rally," the "Mad Money" host said.
Before Tuesday, Cramer heard that some Republicans could break ranks with the President, making it almost impossible for anything to get done.
After Trump's speech, the shoe is now on the other foot. Investors wonder if Democrats could now break ranks and embrace the idea of repatriation of foreign cash and lowering the corporate tax rate.
Heck, Trump could even get support for his trillion dollar infrastructure plan!
Watch the full segment here:
Additionally, many traders on Wall Street believed that the rally had gone as far as it could go with Trump. After 13 days of a record-breaking winning streak, the market had become dull. The collapse of Target (NYSE: TGT)'s stock was like a fire alarm that investors had overstayed their welcome.
"Of course, that all turned out to be wrong," Cramer said.
First, investors should never short a dull market. Second, the market is full of bullish rotations. Groups that rallied first need to consolidate and then go higher, like they did on Wednesday.
There was another element at work that isn't being discussed.
"This is a bull market," Cramer said.
When Cramer got into the stock market back in 1979, people could freely admit when there was a bull or a bear market. Those days are over now because anyone that says the bull is hard to bet against instantly becomes a target. It's just too easy to pull up the video and pick apart how that person was wrong if things go bad.
On the other hand, no one ever openly criticizes the big money managers who tell investors to sell. They never get confronted for scaring investors out of potentially huge profits.
"If everyone is cowed and so few have the courage to say 'this is a bull market and it is hard to bet against,' then you are going to have moments like today where the whole thing just explodes higher," Cramer said.
That, coupled with a kinder and gentler Trump, Cramer said, explains how the bull suddenly came alive and trampled the bears.
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