Positive signs appearing all around

As the market shows resilience, researchers are seeing upside and spreading the word.

By Jim Cramer Nov 21, 2012 10:06AM

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Photographers Choice RF SuperStockWhat a terrific test of the bulls. They survived a French downgrade. They survived a hideous loss and scandal at Hewlett-Packard (HPQ). They triumphed over an amazingly weak quarter at Best Buy (BBBY). And best of all, they beat back a huge, futures-led decline after Federal Reserve Chairman Ben Bernanke said the obvious, that he couldn't revive an economy that drives over a fiscal cliff.

 

How were we able to rally so effectively? Simple: First, the potential cease-fire in the Middle East removed an oil overhang that can always kill any rally in its tracks. Second, we are now getting a picture of a U.S. economy that's stronger -- not weaker -- than expected, largely because of the resurgent housing market.

 

Further, we are actually getting a very interesting research moment. Every morning, I put together the relevant stories I want to cover. That includes a roundup of the important research notes.

Ever since this decline accelerated last week, the bulk of the analyst commentary has become positive, not negative. It is almost as if there is a pact among the analysts to stop bashing stocks and start looking at them through a more positive prism. It's a brand-new phenomenon, and I think it is really helping the market.

 

That, plus the recognition of China as a positive force of good, not a negative force of bad, something that Doug Kass believes in too.

 

When the bulls in research come out en masse, they can stem declines on their own. My question is, what happens if we get some genuinely good news about the cliff, or Europe or earnings, unmitigated terrific news? I think we'd go much higher.

 

Jim Cramer headshot

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust has no positions in the stocks mentioned.

 

 


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112Comments
next time up
Nov 21, 2012 11:23AM
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The  Street is now in full steam rally mode.  Nearly every article is now ingrained with the under tone of the Street attempting to boost a rally.  Business runs in cycles and plays out over time.  In time things will improve and Europe will settle and new economic shoots will begin to grow.  This takes time and it seems the Market forces don't have time.  We have had 35 years of the Feds looking the other way to a complete illegal and Federal sponsored immigration where we are allowing an underclass to provide low skill low wage jobs undercutting the legal American and harming the lifestyles of natural borns.  We have some 30 years of allowing imports to whack the American middle class.  We have had 15 years of an inflated now deflating housing market where homes were used as ATMs and debt was totally ignored.  We have had ten years of massive money printing and amassing unimaginable debt.  And the Street wants us to think Europe offers us hope.  The knife edge mentality these Street folks attempt to pass off on us as normal business is nonsense.  Things just take time.  We will in time figure a way to escape our own failings but to constantly goose all of us into thinking we don't face severe headwinds and the great possibility of a total collapse and the required ensuing reshuffle is irresponsibile in my opinion.  These folks need money to survive as we all do but good God folks let things develope and gel.  This constant three minute outlook is just plain foolish.  JMHO
gomo1598
Nov 21, 2012 11:47AM
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I don't know who this guy is,but clearly he doesn't read anything except what he writes.
VolckerFan
Nov 21, 2012 11:30AM
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Seeker:  "Home prices at a 4 year high" means that home prices are selling for more then they have in the last 4 years.  That's not saying they're at a record high, nor it saying it competes with the 2006-2007 highs.  All it's saying is that housing prices are now on an increasing trend, and surpassed where they were 4 years ago.
havasu46
Nov 21, 2012 11:40AM
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Jimmy says HP sell, sell, sell. Bloomberg says HP's almost uninvestable at this point.

 

Buffet says “Buy when others are fearful and sell when others are greedy”.

 

Time to sell Apple and buy Dell, HP, Microsoft and Nokia!

 

TruthSeekerInVT
Nov 21, 2012 11:06AM
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When does the "Hype and Lies" that everything is getting better stop?  It is time for the so called financial "experts" to get a good dose of reality.  Unemployment is rising, job creation is anemic, inflation is spiraling out of control and the housing market for the most part is still in the tank and look for more foreclosures to be released over the next 12 months.  Now that's the TRUTH!
stric 9
Nov 21, 2012 10:51AM
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the bulk of the analyst commentary has become positive, not negative.

--------------------​--------------------​------------------

I'm guessing their not watching FOX NEWS...

 

AHHHH, HAAAAAA, HAAAAAA, HAAAAAAA!

 

VolckerFan
Nov 21, 2012 12:14PM
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Tumbles:  The debt ceiling deadline wasn't a complete disaster because we raised it.  All we got from it was a downgrade as a "timeout" for congress pushing everything to the brink before coming to resolution.

 

Y2K did cause some issues, just the doomday scenario people who didn't understand computersna machines thought it would cause.  In no small part this is because there was a lot of preparation.

 

So yes.. if we prepare for and minimize the impact of an impending event as a deadline, or meet the obligations required by the deadline there isn't a disaster.

 

The Supreme court ruling on Obamacare wasn't really a deadline, there was nothing really time-sensitive about it.  It was an event, one that basically killed the potential opposition.  It left the only way to undo as congressional action which would require passing over a veto.

steveG1956
Nov 21, 2012 10:59AM
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i hear the wage and vacation freeze we've had since july will end january 1st.  not sure if ending also means layoffs? 
TruthSeekerInVT
Nov 21, 2012 11:15AM
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It is my understanding that in the Obama Healthcare Proposal there is a provision that basically says that any capital gain on the sale of a primary residence will be subject to a tax of approximately 3% which goes toward the healthcare initiatives.  Plus...there is a proposal for the elimination of the mortgage interest deduction.  If these both occur, it will only further depress an already depressed housing market.  Don't believe all the hype the housing "experts" National Association of Realtors and the National Home Builders Association want you to believe.  Many of the homes being sold are lower end and are bank owned properties.  So when the media fueled headlines scream "Home Prices at a 4-Year High"...just look at what base number is being used.  Most of the homes are selling for over half of their original price...so why don't the headlines say that?  All hype...to give the illusion that things are better than they really are. 
Gin_seng
Nov 21, 2012 5:14PM
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Wow! Those 'researchers' sure know how to 'predict' great things when there's been massive layoffs, increasing debt (of all kinds), record US poverty levels, etc...Maybe it's because Obama wants to raid/loot private pension funds while continuing the unprecedented bailouts of the super-rich thieves who continue to loot the world. Ben will keep printing money to infinity, savers lose...let's all get on welfare and use our EBT cards to buy food at KFC or pay for a tatoo. Yeah, Obama let's his 'base' do that. Why not hide your money and suck on the public teat? You'd get much better returns than investing in the stock market.
vineyard60
Nov 21, 2012 11:39AM
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Researchers seeing upside ? Must be on Mars where there upside is at Jim Boy ! The American economy is inching towards a Depression and your Hype and Spin is there positive signs all around!  Great one liner for the Mindless Masses !
Floating
Nov 21, 2012 12:31PM
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I'm glad Meg Whitman isn't running California.


Tumbleweed 1946
Nov 21, 2012 12:34PM
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 If Goldman Sachs hasn't figured out how to turn a potential European contagion loss into a profit with 3 years advance warning, it's their own damned fault
Tumbleweed 1946
Nov 21, 2012 12:22PM
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 Both sides get exactly what they wanted when we go over the fiscal cliff. Spending cuts and revenue enhancement to help balance the budget

 IF you go back on what you compromised on your credibility is permanently shot, since it can be quickly undone. Why even bother to pass ANY legislation at all today, when it will be rescinded tomorrow. Go over the cliff and then write new tax cut bills specifically for the Middle Class. If the GOP gridlocks it because the Upper Class is not included, let them be accountable in 2014
 
VolckerFan
Nov 21, 2012 1:11PM
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Floating:  Don't neglect that they still haven't recovered to where they were before the recession started.  We passed that point a ways back.
canthit
Nov 21, 2012 1:34PM
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Since he sold out to MSNBC and NBC his opinion means about as much as the rating this companies get on thier shows.

 

He can not say anything bad and keep his job.

 

Just another talking head sell out

Floating
Nov 21, 2012 12:39PM
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MG - haven't you learned anything from Europe?
Austerity without the proper stimulus injections does NOT foster growth or recovery.

They continue to have high unemployment - and the riots continue.

Re-TOG Re-TOG (Re-TOG)
Nov 21, 2012 1:21PM
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BLONDIE......You have entered the BEARISH BLOG ZONE...

It's been around here for quite some time..

Much has Political undertones, "but gotten better"...Who would have ever thunk it ???

Evil Chris
Nov 22, 2012 9:42AM
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Happy Thanksgiving from the North my Yank freinds.
next time up
Nov 21, 2012 2:35PM
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Bears and Bulls both offer important actions and perspectives to make this a market.  Liberals trying now to demonize bears as the cause of their personal misery is sooo funny.  In order to have a market we need sellers and buyers, Bulls and Bears, up and down, ying and yang.  Some folks say yes some say no.  The bottom line all of us might recognize;  and one I'm presently thinking Liberals are struggling with is that one persons money and opinion is his to do with as he pleases. Keep your hands off of my pile was a 70's Pink Floyd line, kind of relevant  after this last election. The old school sales ploy to demean someone into buying is just that,  passe old school. Spend your own money, have your own opinion, and let others do the same?  And my opinion is folks on the Street NEED to always make money and they are more so inclined to paint a rosy picture so as to encourage folks to give them their money.  Is that negative?,does that make me a bear?
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