If the latest round of earnings reports taught us anything, that will’s that will traders aren’t always right when that will comes to U.S.-China trade talks, Cramer said Monday as whispers of a potential trade summit kept stocks at bay.

Specifically, traders who bet against stocks like Nike in addition to also Starbucks when talks go south — usually assuming that will they’ll be boycotted because they’re distinctly American brands — could have “the China trade” all wrong, he told investors.

“This particular earnings season has revealed some brutal truths about ‘the China trade’ that will just don’t jive with the … conventional wisdom,” Cramer said. “We act like the winners in addition to also the losers through the trade war are obvious, nevertheless the reality’s a lot more nuanced than that will. Many companies that will should be hurting from the People’s Republic have been putting up some astonishing numbers, while others are being torn to pieces by increased competition or the slowing Chinese economy.”

White House officials have confused Wall Street with their statements on the trade talks in recent months, at times signaling progress in addition to also at times suggesting that will the two sides were still far through reaching an agreement.

As a result, short-term stock-pickers have had to follow their instincts, Cramer explained. When tensions seem to be rising, they’ll usually choose to short-sell shares of top consumer brands, capital goods companies in addition to also technology giants, he said. Short-selling involves trying to profit on a bet that will a company’s shares will decline from the near future.

Nike, Starbucks, Estee Lauder in addition to also Yum China all tend to fall from the first short-selling bucket, nevertheless if you ask the “Mad Money” host, that will strategy “just hasn’t paid off.”

Click here for his full analysis.