Cramer: Why I'm rethinking my view on the market

It was only a few weeks ago that it seemed impossible to Jim Cramer for this market to stage a miraculous turnaround. The Fed, oil, China and Volkswagen all seemed like a dark clouds over stocks.

"Suddenly, good news is busting out all over, and we can't not talk about them. I have been bearish for a while now, but if the facts change, I have to change with them," the "Mad Money" host said.

Monday brought a plethora of good news, and the Dow (Dow Jones Global Indexes: .DJI) jumped triple digits in response. Stocks rallied when it appeared that the Federal Reserve was actually on hold for the rest of the year, oil bounced back and things started getting better in China. Additionally, the issues plaguing Volkswagen seemed contained, which allowed other auto companies to benefit.

Just a few weeks ago, it seemed completely ridiculous to suggest that these issues could be contained, yet, that is exactly what happened. So, to shed light on how the market pulled of its big turnaround, Cramer explained each topic.

First up was the Fed . A few weeks ago, the Fed issued a statement saying that it was on track to tighten, unless facts got in the way of a bullish economy. Sure enough, Friday's weak employment number proved that the economy is weakening fast and an immediate rate hike moved out of the spotlight.

Then there was oil, which Cramer thinks led the market turnaround on Friday. The Baker Hughes (BHI) rig count confirmed on Friday that it had dropped a staggering 29 rigs in the United States. That cut will directly impact the amount of oil produced in the U.S. It was also a sign that the weak hands are being flushed out.

"We may experience a dramatic decline in the amount of oil we produce next year, which will send the price up," Cramer said. (Tweet this)

Third, is the sudden change in Chinese mortgage rates, which was a welcome change in Cramer's perspective. It meant that the Communist Party has realized it has been more of an impediment to growth in China, than its recent behavior and stinginess when it comes to building and buying new homes.

Additionally, since copper is an important element to new homebuilding, Cramer found this to be a welcome change. Ultimately, this could even help Glencore (London Stock Exchange: GLEN-GB), a gigantic mining and trading company that is perceived to be on the verge of blowing up.

Read more from Mad Money with Jim Cramer

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Finally, there is Volkswagen (XETRA:VOW3-DE); it was confirmed that a few of the engineers who were concerned about the high diesel emissions could be behind the scandal. Cramer thinks that while VW will owe billions in reparations, the company might just fade away. Meanwhile, the stocks of other automakers are starting to creep up, a good sign for the group.

So, while Cramer certainly understands that things can't just go from bearish to bullish overnight, there is no denying that a bullish October after a bearish September has happened before.

"For the last week I have been saying that when everyone's bearish, it is time to rethink your viewpoint. That is exactly what I am doing," Cramer said.

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