Record highs put market in 'sweet spot'

CNBC's Jim Cramer says the bounce back in hard-hit names pokes holes in the bubble talk for tech and biotech.

By MSN Money Partner May 13, 2014 11:45AM
By Jeff Morganteen, CNBC

With the  Dow Jones industrials ($INDU) closing off their second-consecutive record high and the Nasdaq Composite Index ($COMPX) making up lost ground, the market appears to be in a "sweet spot," CNBC's Jim Cramer said Tuesday.


The ongoing bull market has been riding great rotation after great rotation since the 2008 financial crisis and into its current highs, Cramer said. He added that the recent one affecting a slice of high-momentum, biotech and Internet stocks seems no different.

The Standard & Poor's 500 Index ($INX) also reached 1,900 points for the first time Tuesday.


"Great rotations the whole way up," Cramer said on "Squawk on the Street." "I've never felt that a bull market ages. I'm not saying it's a fine wine here. It's not like a great cabernet."


The bounce back in hard-hit names pokes holes in the "bubble talk" surrounding the tech and biotech sectors, Cramer said. Some thought the declines in the Nasdaq and Internet plays would bring down the Dow, he said, but that's been the opposite of what's been happening.


Cramer said the rally could cause Wall Street to come out in support of stocks like Salesforce.com (CRM) -- the "umbrella" of the software-as-a-service section of Internet stocks and what Cramer calls a bellwether of the rotation out of those stocks.


"The analysts are all making a stand today on cloud and Internet because they saw the bounce yesterday," Cramer said. "There's so many IPOs in the chute, they almost have to come out and make a defense right here. They're out of their fox holes, making their move."


Disclosure: Cramer's charitable trust does not have a position in salesforce.com.


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67Comments
May 13, 2014 12:24PM
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may 7 the carney called a market top...........now we're up he calls it the sweet spot. he isn't even tricky, he just says what has already happened. and how about those phony faces he makes when he rants about nothing
May 13, 2014 12:50PM
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Who cares.  I can't even find a job so it doesn't matter how well the stock market does.  It's a rich man's game.
May 13, 2014 12:55PM
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This is no Bull Market.  I know about Bull Markets.  This is a Pony propped up with makeup and stilts to look like a Bull.  Americans have been so conditioned to propaganda they no longer have the ability or desire to see things like most humans have in the history of the world. 
May 13, 2014 12:25PM
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You have to laugh at Bobo ...last week he was calling tops, and constantly referring to bubbles and this week we have a positive day and he is a bull again .....I guess if you can change your mind every day it's easy to point back at how "correct" you were !!!
May 13, 2014 12:40PM
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Didn't he just call bubble like last week???
May 13, 2014 1:47PM
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Amazing how the sheeple give Obummer credit for record market highs, but no blame for record number of unemployed, food stamp recipients , welfare recipients, disability fraud, debts levels, yada,yada,yada
May 13, 2014 1:45PM
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As long as the free money and billions keep flowing the market will always be great. On the day after record marks it's profit taking, then back up again. God bless the rich because the only way to go is up. The scared sheep that give up their rights for Gov't protection from "Terrorist" are happy as long as their reality TV shows stay on the air and they can read about their Hollywood idols. F'em all.
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The end is coming to the stock market and the dollar

Let's see the US deficit is worse than it was in 2008, Employment is worse than in 2008 tens of millions of Americans are not even looking for work now and if they find it it is at minimum wage for 29 hours a week.

The super rich have gotten even richer leaving less and less for the rest of us to live on.
The government falsely reports inflation and says everything is fine when it is not.
All of us except the super rich are stressed out wondering how we are going to pay 20 percent increases in our car insurance, health insurance and home insurance and taxes on our houses when our income is the same or falling.

Yep we are just about at the breaking point folks Sept 15, 2015 is the collapse of the dollar.
May 13, 2014 2:17PM
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I am not reading the article. How can stocks not be in a "sweet spot"? With nearly zero percent lending to big banks thanks to the Fed, you can't make any money in bonds or money markets.
May 13, 2014 1:34PM
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Even the French are thumbing their nose at Obummer.......  Foreign leaders all think he is a joke.
May 13, 2014 1:00PM
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Satan couldn't find a better spokesperson than Cramer, Mr. Bubble. Normal greed is a natural human characteristic, but this level of greed that I'm seeing surrounding these stock markets is not normal. This kind of greed is a mental illness. They are crazy. History is full of examples where whole large groups of people go crazy together, especially when an authority sanctions them. And they support each others aberrant behaviors and feed off each others craziness: the Nazis, Jonestown, slavery... I believe this is the kind of situation right now in the financial sector.  
May 13, 2014 2:00PM
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Looky who got out of jail.  And he is right back at it.  Learned a lesson did he?  Not!  Time to start pushing the report button again.
May 13, 2014 12:56PM
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"Sweet Spot?" This is just the people who survived the '70s and the '80s and the '90s all cowering together with the walking dead who didn't survive the "Crash of 2008" and saying "Never Again."
May 13, 2014 3:24PM
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This is all going to end very badly.
May 13, 2014 4:11PM
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For fake marine

Taxes on wages (in any form – flat or progressive) are the greatest evil of our American Republic. When government is free to steal from you, there are no limits to waste and abuse in government. If a person chooses to work extra hours or two jobs in order to better provide for themselves or their family, they should not be penalized, but that is what happens. The more you make by working harder and longer, the more money is stolen from you, and given to those who spend their lives living off the hard work of others.

The revenue the government needs to provide legitimate constitutional services should be obtained primarily from a national sales tax instead of a tax on wages. All would pay based on consumption, the more you spend the more you pay. The more luxury you surround yourself with, the more you pay. Your choice. A national sales tax system would capture money spent by criminals and by illegal aliens who currently pay near zero in taxes. There would need to be some exemptions: Cars (already have a federal excise tax) Primary Residence/Rental Properties (vacation homes would be subject to tax/rental profit would be taxed) Fresh Food (Preprocessed foods and prepared meals would be taxed – only fresh/fresh frozen/canned goods would be exempt) Insurance Premiums, Health Care & Certified Education.

Adding another layer of tax to a business would not be fair. Businesses would need to be compensated by keeping a portion of the tax to cover the expense of collection and reporting. A percentage of .20 to .05 would be fair.



May 13, 2014 3:46PM
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To all who don't understand this new monetary policy here is a simple explanation...the Fed isn't printing money...the Fed purchased mortgage backed securities which was done electronically to the commercial banks..banks overwhelmingly parked this money in accounts with the Fed or purchased treasuries..none made it to main street which with lower rates could help spur growth...the Fed next purchased treasuries to push banks to lend since the treasuries they held earned lower interest after the Fed began to gobble up the debt...with the Fed buying so many the price rose which in turn drops the rate earned on those 5 and ten year treasuries...then the Fed began to buy the treasuries held by the banks rewarding them with the increase in price that the Fed had engineered itself...still the banks parked the money with the Fed in earning around 3% I believe....the only people to benefit from this extra cash was mostly made up of corporations refinancing debt or taking on debt to reward stock holders with a dividend...CEO,s and board members who hold large numbers of shares get rewarded handsomely...those large shareholders have most of their wealth in stocks...since the rich have benefited so much over the last five years the stock market keeps on rallying.......so in a trickle down way the Fed is injecting money but the real truth is the rich are just getting richer and that's where their money is...like if you won the lottery your bank balance would increase...difference is the rich bank at wall street.

The sheeple are to blame...I'm a union worker private sector and watch my "bros" fleece themselves...most shop at Wal-Mart even though they can afford not to and never look twice to see if something they buy is made in America...they buy everything they want on payments and then come contract time they roll over and except any agreement just so they can continue they're payments...then in the paper we are ridiculed for being paid well but negotiating an agreement...then after a loss of our pension" which I do believe are unsustainable" the next quarter all the directors receive a bonus and raise in compensation for increased revenue...instead of that money going towards the workers and being spent in the community it goes into a few hands....well town folks and sheeple in general don't "get it" how this whole game really works they get you to choose between two parties that are really the same but in turn divide everyone so this whole sharade can continue...I work hard,save and invest my money in stocks but watch in order not to fall prey to the eventual reversal in the stock market...I drive two ten year old vehicles and watch others drive new shiny ones all the while having the money to buy one but instead earning average 8% on my money while they pay 3% interest while their vehicle depreciates at 3 to 5% a year...You just can't help but to laugh!!!
May 13, 2014 12:50PM
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"Sweet spot?" Cramer's little "sweet spot" singularity that goes up, and only up, forever? Cramer is a lying piece of ****. I haven't seen this kind of lying since the fully rigged, manipulated, and centrally controlled Soviet Union tried calling day night and night day; up down and down up. All this must end. Kill the Stock Market. Kill the FED.
May 13, 2014 2:18PM
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Dah Jim did not pen this article.  He is being quoted and his musings relayed.  Not what I would like done to me.
May 13, 2014 1:44PM
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I guess you get your instructions on when to act outraged or disgusted through ACORN right Beav....... Obummer passes it down through them. Unlike Tim you follow orders from OGODA.
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