Worldwide funded freight train coming at you. Hard to fight. Hard to stand in front of. That's what I think is happening here. It is clear that Ron Insana, in his fabulous Market Movers commentary this morning and with his quick moves to catch some of the move, totally agrees with me. It doesn't take much to see that Doug Kass is going full bore against me.
I feel like Michael Corleone in the lamented Godfather III. Every time I want to get out, they pull me back in again, and this time the pull is from the macro, where the central bankers keep plowing the money in, and from the micro, where one of the biggest deals in ages -- the Kraft (NYSE: KFT) (Cramer's Take) hostile on Cadbury -- reminds us that stocks aren't expensive, they are cheap.
Plus, don't forget the Abu Dhabi bid for Chartered Semi (NASDAQ: CHRT) (Cramer's Take), something that fits in perfectly with my multi-parted piece that's running now.
I think this market's getting away from the lock-step coordination with the commodities and going much more toward fundamentals, as I see multiple upgrades of industrials today like General Electric (NYSE: GE) (Cramer's Take) and 3M (NYSE: MMM) (Cramer's Take), as well as positive comments about retail, where Costco (NASDAQ: COST) (Cramer's Take) gets several upgrades and amazingly positive commentary about tech from two major houses. Don't forget that the seasonably strong period for tech begins this week.
With that kind of lineup, I feel pulled back in and feel that the blink-of-an-eye selloff last week must have attracted a ton of bears to the short side.
Sure feels like it.
This market puts up a fight about coming in daily. I think it can come in a day or two this week -- we always have a big down day the week before options expiration.
But I think it will be a chance to cover shorts, or buy into, as the strength and the takeovers do make you feel like you are standing ahead of a Union Pacific locomotive bearing down at 80 miles an hour with 100 coal cars right behind it.
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 had no positions in the stocks mentioned.
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Reader Comments (Page 1 of 1)
9-08-2009 @ 12:30PM
ebrandler34 said...
So.......today at 10:00 AM (09/08/09), Cramer says "dive back in"......Genius
He has his prognostications bracketed now. Depending on which day, over the last three weeks, you can choose "back up the truck....load it up", or "take some money off the table....it's time for caution".
The guy can't miss, unless the market can somehow stay in a (Dow) 200 point trading range, in which case he can take credit for being right both ways. Sweeeeeeeet!
I'm just a simpleton, can you help me understand?
9-08-2009 @ 2:11PM
Iridium said...
Simple, governments around the world are still piling money into the market thus us goes up. So long as governments pledge to support the market through cheap money we will get a higher stock market. The problem is what will happen when the stimulus goes away. We had the dotcom bubble, the housing bubble, the commodity bubble, we are in commodity bubble 2, and the greatest bubble of them all THE FED BUBBLE. Wall Street found its greatest source of funny money of all time. THE GOVERNMENT ITSELF. No need to get individual people to buy stock. No need to create a growth engine through the population. GET THE GOVERNMENT TO FINANCE A BULL RUN.
The ENTIRE rally was financed through government money being filtered through institutional trading houses.
What do think would happen if you throw a few trillion into the stock market over a few months?
The problem is that the growth is not real. It is 100% financed through debt. There isn't a company out there that is actually growing through an increase in sales, other than the dollar stores and discount chains that only function by buying leftover inventory from the big guys.
AND CRAMER STOCKS ARE NOT CHEAP!!!!!
Many are trading at historical P/E highs!!!!!
A P/E of 30 is now the new cheap stock. They always say that the stock market looks six months ahead.
WELL WE ARE 6 MONTHS PAST MARCH WHERE WE GOT A 35% RUN. WHERE IS THE 35% INCREASE IN EARNINGS TO SUPPORT THAT!!!! WHERE IS THE 35% GROWTH IN THE ECONOMY!!!!!
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