Is market playing a new ballgame?
What turned things around Monday? Here are 5 reasons that just might have some staying power.
The charts were so hideous, almost every one I looked at. Yet we had a terrific rally Monday. Just shows you how deceptive everything can be.
What turned it around? I count five reasons that just might have some staying power, no matter what happens in Tuesday's presidential debate.
First, Europe's bond markets have gotten quite good of late, including the Greek market. We have been suffering from a European hangover pretty much every day for the past couple of weeks. The strength in Italian bonds versus, say, last year is remarkable. No wonder there's a bid every morning in those stock markets.
Second, the negative Apple (AAPL) stories have dogged the market. Monday was the first day I heard people say that perhaps if Apple bounces off the low $620s it is time to buy. It did. Soon there will be people who say the downside in Apple may actually be less at this level ahead of earnings than the upside. When was the last time you heard that about this stock? (Even my hatred for tech has limits).
Third, when Citigroup (C) reports, there's usually some flaw that brings the whole deck of cards down, but not this quarter. The emerging-market surprise took everyone by storm. The net interest margins were good. The commentary was almost uniformly positive, except for the one area everyone else is raving about: housing. It was an oddly good quarter.
Fourth, regarding Sprint (S), the idea that there's $20 billion somewhere, anywhere, that could be headed to our markets actually mattered tremendously. Just a huge, out-of-nowhere box of confidence. But I still think the tower stocks and Clearwire (CLWR) should be sold.
Fifth, we get a lot of different macro numbers. Somehow this retail sales number Monday morning has become like a mini employment number. Things trade off of it. The apparel companies and many of the retailers all took off as soon as we saw it. I am noting once and for all that this retail sales number is regarded, in this era, as actionable.
For Tuesday, there are more new data and a big debate. Still, the takeaway is that coming into Monday's session all I saw where charts that were breaking down, except, notably, transports. Coming out of Monday's session, I saw stability where there was none.
Maybe, like the second half of the Broncos-Chargers contest, it's a new ballgame?
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 and is long AAPL.
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If anything wages in other countries like China are coming UP. The US should not lower wages for the middle class any further. If that happens, there will be a war like you've never seen.
You've given me EVERY REASON to PROMOTE the re-election of President Obama. Looks like the New World Order is a Conservative idea. No thanks.
"Is the Market Playing a New Ball Game"
NOPE..just a continuation of manipulation of data regarding job creation, unemployment numbers, housing info, consumer sentiment etc. all in an effort to keep the market as high as possible going into the election. Even when bellweather companies report bad earnings or forecasts such as CAT, Alcoa etc. it has no ill effect whereas if they report even a glimmer of positive news the media jumps all over it and the market soars. I think the whole economy is nothing more than a house of cards just waiting to topple but those in control will not let that happen but we shall see after the election.
reasons market is deflying gravity and going up
1) Bernanke and QE3 or is it QE4 now
2) Bernanke and QE3 or is it QE4 now
3) Bernanke and QE3 or is it QE4 now
4) Bernanke and QE3 or is it QE4 now
5) Bernanke and QE3 or is it QE4 now
pretty much the market is going to crash and burn all the way to the ground within 5 years tops
The Chinese now have an official policy of doing away with the US dollar as the world currency within the next 5 years.
They have used their US Treasury bonds to secure their new buildings across their country so they can quit paying on the buildings and the US investors in those buildings will not get the building but the worthless US T-bills backing the buildings when the US dollar collapses.
China has solved what will happen to their $1 trillion dollars plus in US T-bills if the US dollar collapses and so they are now free to destroy the dollar as they have no stake in the dollar anymore.
They are saying that the Chinese yuan will be the currency to replace the US dollar as world currency and as far as I can tell they are right.
The US is living on borrowed time and perhaps Obama should lose the election as the next US president will be the one the history books say lost the US economy and let the US self destruct.
The rest of the world worried about our nukes will demand the fallen US abandon it's nukes. Probably China will get them.
The psychology has changed. I travel around the world a bit and everywhere I go I see people improving their standard of living. I've seen people living in grass huts that have cell phones. Globalization is lifting people out of poverty at an astonishing rate. Commodities and multinationals have nowhere to go but up. Western civilization may have to adjust to a lower standard of lliving because like it or not, things are evening out. That will be unacceptable to many, but this is good for humanity as a whole. Probably not so good for the planet. There's no turning back although there are sure to be fits and starts.
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