Market weighed down by another 'macro morning'
Investors will begin the day more concerned with the big picture than with the terrific news from Dow giants 3M and Disney -- but only until stocks slip to more attractive levels.
But the market looks soggy.
That's how it has been this whole run, hasn't it? The fundamentals of individual companies don't seem to matter in the morning. People yawn about amazing theme park attendance, even if no one expected it. People were downbeat about 3M's quarter and outlook, and then the company boosted its dividend and announced a big buyback, basically saying, "Look, we are much more rosy about the future than you are."
But that's all micro. People trade macro in the morning: Bernanke's time to be grilled negatively? China overheating? Oil not rallying? Mubarak not caving? Federal budget talks failing? That's what people trade off of. It's never good, and futures drag stocks lower.
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Until, that is, stocks go down to some level where a silent alarm seems to go off and managers say, "Aha, the macro has driven down the stocks I am looking at to levels where I can do some buying"
And the yo-yo goes right back up again. The buyers come in because so many managers just don't have enough merchandise on their sheets. They have to use every opportunity to put money to work.
Now, just like a coin that keeps coming up heads, this streak cannot be continued. We've been up for seven days. It's just not conceivable that we could keep going up.
If we go up today, though, I guess I could write the same thing tomorrow. I mean, to some degree, the bearish traders this year are playing a lot like the Cleveland Cavaliers, even as they present themselves as if they are the San Antonio Spurs.
Otherwise, just wait. Nothing urgent to buy -- or sell.
Random musings: My instinct is to buy Wells Fargo(WFC) on this weakness stemming from the resignation of Howard Atkins. Sure, I wish I knew more. But the turn is so big here that the issues of one man, even the CFO, are not enough to make me turn negative.
At the time of publication, Cramer had no positions in the stocks mentioned.
Follow Cramer's trades for his Charitable Trust.
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[BRIEFING.COM] S&P futures vs fair value: -7.50. Nasdaq futures vs fair value: -15.50. The stock market is on track for a lower open as the S&P 500 futures trade 7.5 points below fair value with 15 minutes to go before the opening bell. Futures spent the bulk of the overnight session in the red with the exception of a short-lived appearance in positive territory, which took place as the European session was getting started. Speaking of Europe, major indices there sit near their lows ... More
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