Cramer: Trump's tariff delay short squeezed stocks to spark a rally

for not taking more aggressive action in cutting the benchmark interest rate beyond 25 basis points nearly two weeks ago.

"It gives President Trump cover to strongarm ... Fed Chief Jay Powell ... into cutting interest rates more aggressively. Tariffs are inflationary," Cramer said. "Now Trump can use this delay to show Powell ... that there's no real inflation, which will give the Fed more leeway to cut rates. Look for some tweets saying that."

Wall Street rebounded from its Monday avalanche in part because of the short squeeze, which is where investors who bet on the market to fall have to close their bets to avoid losing money. That creates more demand than supply, which shoots stock prices higher. "Put it all together ... you got a vicious short squeeze, where everything that was hated is now loved and everything that was loved is now disliked," Cramer said, and "the stocks that benefit from this stay of execution were big enough to help lift the whole S&P 500."

Cramer said things could get worse for the bears as China deals with a slowing economy and tensions in Hong Kong. Pro-democracy protesters at Hong Kong International Airport caused"I'm betting the Chinese will give in, at least on agriculture, and do some buying," Cramer said. "There's ample opportunity here seeing as there are a bunch of calls scheduled between both sides.

Donald J Trump is a very very very small man. The more you advertise how markets react to his, mouth flatulence, the more inclined he is to fart.

So.....was this a temporary situation? Trump is unpredictable.

Can't believe our economy has been taken over by tweets!

Being unpredictable is how you win!

Ha! Hope Soros was part of that squeeze. 🤗👍

Is he manipulating the stock market ?

jimcramer lost it! He became Mr. Captain Obvious and a Trump pleaser!

We are witnessing a failed presidency in real time. He is not well. As long as he’s at the helm, U.S. will not be well. It will take a decade to recover because of his economic antics.

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