The top Q1 performers indicate the market can run higher

CNBC’s Jim Cramer on Monday said investors can get an idea of how the market could perform inside the second quarter by understanding how the major averages rallied during the first quarter of the year.

The Nasdaq had the biggest gain — 16 percent — to open the year. The S&P 500 rallied 13.1 percent along with the Dow Jones Industrial Average added 11 percent inside the first quarter. The indexes all added more or less 1.2 percent during Monday’s session.

“I think the stock market benefited by a dearth of completely new supply” due to the government shutdown, its impact on IPOs along with the high-volume of company stock buyback programs, the “Mad Money” host said. “I think This kind of market can go higher as long as we don’t get overwhelmed with completely new supply by This kind of wave of IPOs, because I think the valuations are still too low for so many stocks, like we see by the top several performers inside the Dow.”

the idea was a “fabulous windfall for investors” until Friday, Cramer said, when Lyft went public at $72 a share along with traded as high as $88. The share cost fell to nearly $69 at Monday’s close.

“which action in Lyft will be not a not bad sign for the stock market,” he said. “We’ve got a trillion dollars’ worth of private companies which are looking to have IPOs, along with if their stocks act like Lyft’s along with no completely new money comes into the market, the supply of completely new stock will crush the averages.”

Cramer took a look at the Dow’s highest-performing stocks inside the first quarter to predict the future.