The Lowe Rally has been fueled by more than a solid quarter

Shares of Lowe's climbed more than 10% after the company posted more optimistic results in the second quarter, up on its Wednesday guidnace.

If you ask CNBC's Jim Cramer, it's not the only thing that has supported the rebound in equities during the session.

After Home Depot – Lowe's main rival – surpassed earnings estimates the day before, a number of hedge fund managers gained momentum and decided to bypass Lowe's, he said. A short term is when an investor is betting that a stock price will fall in the near future and is trying to generate a profit on the depreciation.

"This type of trading is a way to bet on the comparative performance of companies in a given industry," said the animator of "Mad Money," calling it a "pairwise trade."

However, when Lowe reported this morning, they realized that their hands were bad. The home improvement retailer experienced slightly higher comparable sales growth in the United States compared to Home Depot – from 3.2% to 3.1%. The pair trade was interrupted and caused a brief push, Cramer said.

"Traders know that discipline overrides belief, it's a rule, if a trade opposes you, you have to get out, which means in this case cover your short positions at all costs. ", did he declare. "The disciplined short sellers bought back shares to close their positions and take the loss, which catapulted the thing into the stratosphere."

Cramer gives an overview of the short cuts here

Cramer said the economy was doing well, but that Wall Street could talk to itself about a recession.

The stock market, up less than 1% during the trading day, continued its recovery after the sell-off last week caused largely by concerns about the recession signal, adding in the long run trade war between the United States and China. .

the and both registered their fourth day of positive trading over the past five years, while finished his third in four days.

"If the president simply had to calm the rhetoric about China, rather than take it as some sort of feeble receiver, the bears would lose their biggest crutch," said the host, accusing the bond market of fearing the market bond. "angry rhetoric and scary jeremiads of supposed experts" who should listen to conference calls.

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The head of a payroll services company told CNBC that he saw no signs of slowing down in mid-sized companies, despite growing fears of an impending recession.

Paycom CEO Chad Richison said his company may not have been an excellent "proxy" for the rest of the economy, but that his company had the pulse of the company. hiring in the country. The cloud-based human resource provider has digitized the way employers manage their human resource workshops.

With more than 23,500 customers, the technology company disrupts the payroll sector and targets companies employing between 50 and 5,000 people.

"I think the economy has been strong," Richison said in a face-to-face meeting with Cramer. "We do not really see a deterioration of growth in [medium-sized businesses]but, you know, we're waiting to see what happens. "

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Technology has affected almost every sector and a subset is transforming the backend of business operations.

Cloud computing is a secular theme of growth in recent years. It is one of the most popular segments of the market, but the average person can not explain what the companies in the group really do, CNBC's Jim Cramer said on Wednesday.

The host "Mad Money" has crowned a number of his favorite actions in the sector and umbrellas "prince cloud" more risky, but only advises investors to own businesses for which they have done their homework.

"There are many opportunities in the cloud, but if you want to own those stocks, you have to understand what these companies actually do, which is why we are proposing this whole series of initiatives," he said. he declares. .

Cramer broke down and gave recommendations on 11 names of the cohort of cloud-based software.

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Disclosure: Cramer Charitable Trust

owns shares of Home Depot.