Uh oh, where it the persistent bid? Did it disappear? Is it resting? Has it gone away?
Throughout the last three weeks we have seen a persistent bid underneath the market, mostly led by Nasdaq futures, that was relentless and dropped off only once when GE (NYSE: GE) (Cramer's Take) was reported to have guided down.
No one knows who the buyer or buyers were, and because volume has been thin, the buyers had their way at the opening and then again at some exquisite marking up at the end of the day.
Everyone who has tried to fade this phalanx has been chewed up and spit out. It has been there irrespective of news flow. Many of the earnings reports in this period have been extremely disappointing -- in fact, only Apple (NASDAQ: AAPL) (Cramer's Take), 3M (NYSE: MMM) (Cramer's Take), Google (NASDAQ: GOOG) (Cramer's Take) and United Technologies (NYSE: UTX) (Cramer's Take) have really delivered. It has been there irrespective of more bailouts, which surely by this time would have started to produce weakness in the market, not strength.
It is not there today.
I am of the opinion that like a snake in the weeds, the persistent bid will be there, particularly because Asia's so strong.
But there's a difference. This time I want to peel stuff off into the bid, which I figure surfaces as we build toward the opening and then lifts us throughout the day. The 20% rally off the bottom has made me no longer want to go along on this elegant ride, especially because many of the stocks the bid took up yesterday involve companies that must pay some price that the Democrats can exact, and many of them were up because of rumors, picked up throughout the day, of a stunning upset engineered by John McCain and Sarah "Big Oil" Palin.
Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long GE.
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Reader Comments (Page 1 of 1)
11-05-2008 @ 9:55AM
Beltway Greg said...
Jim,
How about a story on the shocker of the day? Apple, which had previously been depicted as a rich man's toy, is actually doing quite well among those in the lower income brackets. It seems that by using the phone they're actually saving money.
I wonder if the Geico Gecko is available to do some ads?
Beltway Greg