10 signs that a bear is stalking the market

Something is very wrong when we get strong economic news and interest rates plummet. That's a fear of an unknown unknown.

By Jim Cramer Apr 11, 2014 12:22PM

Sculpture of bear outside Frankfurt Stock Exchange © Ed Pritchard/Getty ImagesTo me, the bear case is as easy as pie.


Let's dispense with all form. Here it is.


1. Something is very wrong with the market when we get strong news out of the economy and interest rates plummet. That's a fear of an unknown unknown. What's the point of buying when there is something lurking?


2. When interest rates plummet, the banks plummet, particularly now that the short rates aren't going higher. Banks are the linchpin of all big rallies and we have lost them.


3. There is no price where the insiders won't sell these extended techs with no dividends or earnings.


4. We have had a big run from the bottom, almost a triple, so it has to be out of gas and extended. It was just high-multiple stocks. Now it is every stock.


5. We've seen this movie before in 2000. In fact, it was this week to the week that we were really beginning to thrash with the really awful dot-coms -- the equivalent to what has come public like FireEye (FEYE) and Splunk (SPLK) -- crashing daily and the insiders still selling no matter what the case.


6. Japan is a disaster.


7. China is a disaster.


8. The world is being kept afloat by central bank fiddling.


9. The initial public offering flow doesn't stop. The Street on MSN Money


10. Earnings will be terrible.


There, I made it. It's very easy to stand by. In fact, it's so easy that perhaps it's too easy, too obvious.


But for the moment I am just going to put it out there so I can say "Don't I know it" and "I see how we can get hammered."


Now I feel better. I have seen the call. I know the drill. And it does merit more downside.


Then let's see what happens to the obvious scenario. Maybe it won't be so obvious at lower prices. Maybe that's what the bulls need in response to the obvious scenario. Time and price can do an awful lot for a market that's now scorned, hated and with a nasty sea change.


Obviously.


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Jim Cramer's Action Alerts PLUS: Check out this charitable trust portfolio to see the stocks Cramer thinks could be winners.




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129Comments
Apr 11, 2014 1:33PM
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"10 signs that a bear is stalking the market
Something is very wrong when we get strong economic news and interest rates plummet. That's a fear of an unknown unknown."

Jimmy, the FEAR has always been and will always be the $500-700Trillion in Scam Banking Derivatives Risk. That is the MAIN reason the Fed has over $4Trillion in Fake Money on it's balance sheet and growing. It's truly amazing how the very Scam which Locked up Credit Markets  isn't listed as the Number One thing which is still stalking the Global Markets.


Yet as the insanity continues, Bankrupt Greece is able to get Billions in Loans under 5% while a Bankrupt United States gives away Billions to bankrupt entities overseas. Global Debt is 40% higher then when the Great Recession begin, yet the Mainstream Media behaves as it none of these Facts exist. Insane.

Apr 11, 2014 1:49PM
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Obama's last words to Kathleen Sebelius.......... Please don't write a book.
Apr 11, 2014 2:12PM
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Obama's market massaging can only go on so long.  Six years of stimulus with no real world results will eventually have the market fall through the cardboard platform it was built upon.

 

In other words, this is all fake, just like the rest of his policies.

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What?? Cramer calls one right on the money???

The only two things he did not mention was the yen carry trade blowing up in everyone's face and the fact that shadow banks (caused by regulators around the world starting to do their jobs and regulating official banks) have been leveraging fake money up to 500 times across the world China,UK,USA,FRANCE,GERMANY everywhere. Folks these shadow banks are about ready to implode the world's economy and send everything spiraling down. And their faked monies are so great that even the central banks of the world can not cover their losses as the losses start to materialize over the next few months. The IMF is warning about them but even the IMF does not know the sheer size of these monsters nor the absolute destructive force they are going to cause.



Apr 11, 2014 1:38PM
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The market sputtered for months in late 2007 and early 2008 as well, hitting record highs over 14000 then dropping to 11000 and back up to 13000 before the big drop. Of course, at that time that Fed wasn't printing $85 Billion a month in funny money to keep the market inflated.........
Apr 11, 2014 12:48PM
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Either it is me or you Jim but we are both rubbing ourselves into the same corner.  One more thing I might add that you didn't, not that I argue with any/all your points.  The wage arbitrage for the last twenty or so years where the Internationals both here and in Europe have been able to amass grossly stupid profits by supplying cheap labor goods to developed markets from undeveloped or emerging markets is beginning to come to an end.  This really was not business but more a currency manipulation.  This gave these emerging markets incredible anticipation of wonderful demand and good things to come.  Nobody told them it would merely be a temporary once in hundred year occurrence.  Sad so many lost so much and might never make it back while so few made so much money they became intoxicated to the point of not understanding or seemingly caring about the long term damage they were inflicting on their fellow Americans. I am most definitely suggesting we need to go back to the Economic drawing board for our continued survival Jim as it seems the powers at be just don't get it.  It is like being in the middle of the lake and the boat springs a leak.  You have a bailing bucket and begin bailing only to see the water is coming in faster than the bucket and you can bail.  So do you just keep bailing like our electerds and Internationals are now doing or do you look up, recognize the plight, and start thinking of a better plan. JMHO
Apr 11, 2014 2:15PM
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That's the problem Little Beav............ If you point out that she did a crappy job you're just a "War on Women" person. You little liberals give everyone a pass for anything as long as they are in your protected camps. What good does it do to have leaders that can't be criticized when they need it.

Apr 11, 2014 12:35PM
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Narcissism and social networking are dot com 2.0.
Apr 11, 2014 12:32PM
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We don't need 10 signs... any idiot can look out a window and see it.

The real threat isn't the fact that the markets are starting to look like actual America... it's the DEBT spent to create YOUR rose-colored glasses mask and an artificial prosperity. I hope you know that YOU get OUR bill because YOU drank the Kool Aid. 
Apr 11, 2014 2:14PM
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Our economy should be growing at 5, 6, 7%, the economic technology is available and what is stopping it - Obama, congress and the fed.
Apr 11, 2014 3:07PM
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The Fed$4trillion in debt the worst debt ever and printing money every day. The Fed give away to the banks zero interest rate and the market at record highs. I wonder when the sh-t will hit the fan?
Apr 11, 2014 2:12PM
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So we have low interest rates and things are showing signs of being overprice and slowing?  Sounds like we need more stimulus Jim.  Gots to keep that inflation rolling along ;)

 

I swear people need to wake up and realize all that happened in this "recovery" was psychological.  Massive amounts of money were printed just to keep large financial institutions and corporations afloat and minimize their losses by stabilizing prices.  When push comes to shove the too big to fail issue was only made worse.  Now we have a massive transfer of debt to the government and a too big to fail issue that will involve and takedown governments.  I hope nobody sneezes.  We really need to treat governments more like banks and they need to have huge reserves in savings in order to borrow anything.  Encourage low level fiscal responsibility and expand those rainy day funds in government.  It will make us much stronger. 

Apr 11, 2014 1:33PM
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I bet none of the guberment cronies got burned on GM........ nothing like being in the know.
Apr 11, 2014 2:10PM
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Obamaville's debt is a drag on everybody's economy.

Apr 11, 2014 2:04PM
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The market has no reason to be up. The only case for it being up is that the Billionaires in 20 years will own each company and the Middle Class will be enslaved by then. That seems like a real possiblity right now.

 

How can this market go up. The Middle Class is completely broke. In 2000 the average Middle Class person made $55,000+ Twelve years later they are making an average of $56,000+. A whole $1,000 more. Basically 2% increase over 12 years. The cost of living has gone up 33%. So the once massive Middle Class is now living on 30% less income. So unless it is basics rent, food and gas there is nothing left.

 

So the eveil billioanires better start by GM and Ford cars by the 100 of thousand each. The Billionaires through their massive lying and cheating and looting the country are the only ones left with money.

 

The Billionaires and The eveil members of Congress who they own are the face of Evil. They have looted the country for themselves. Now Paul Ryan AKA the devil's son proposes a $5,.2 Trilliona cut in Middle Cl****grams to loot on a massive basis the what is left of the Middle Class. Get what ... All members of the GOP except 12 of them voted for this evil deed. Twelve evil GOP members said that the war on the Middle Class is not enough.

 

Evil Billionaires and the Evil members of Congress are the Face of Evil. Stop these eveil people and their war on the Middle Class

Apr 11, 2014 1:56PM
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The question should be will the market hold 16,000 on the Dow today.   All the 50 day moving averages have been broken.
Apr 11, 2014 2:16PM
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If you see a phrase like "unknown unknown" in the header of an article, you can be pretty sure all that follows is crap.
Apr 11, 2014 12:40PM
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The market is not hated a few percentage points from an all time high. It was hated in April 2009, at 7000.
Apr 12, 2014 10:59AM
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If we are lucky there is a bear stalking the markets. The reality is that there is a bear stalking the economy. Overspending by the government to prop up social entitlement programs, overspending by the government to insure evermore risky real estate backed investments by "too big to fail" banks. Inability to address the ever-expanding federal debt. Too little government regulation in the financial sector where it is needed and too much government regulation in peoples personal lives where it is not needed.


Apr 11, 2014 7:54PM
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Hey Dave1230,

The mainstream media is ignoring this story for TWO and only TWO reasons.

1) They've been told to.

2) Since they're in an incestuous relationship with government, [and it doesn't matter what type of government] they can be considered a BRANCH of the government nowadays, NOT the government watchdogs that they PRETEND to be!!!

So, of course, they're ignoring all the TRILLIONS in money creation, or downplaying it, while this CORRUPT government and ALL their cojone sucking friends in the media, profit from all the corruption in wall street and DC.

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