It's a self-fulfilling prophecy

Ultimately, the market has a nice bias to the upside with very little data ahead of it.

By Jim Cramer Aug 8, 2012 9:48AM

Chesapeake (CHK) is signaling that there's more than just hope in the group. If CHK can sell $13 billion in properties, up from $11 billion, what does that say about Devon (DVN), which is only $23 billion? It could JV half the company for that market cap. It also says that there are companies that want to drill those properties and that means that the rig count could actually be bottoming out.


Of course this could all be part and parcel with a materials move based on higher interest rates -- woo hoo, mortgage rates at 3.4%, get 'em while they are still low! --and copper rallying.


It also could be more Middle East troubles with a sense that domestic oil security will strike someone's fancy eventually in Washington.


Besides the rotation into natural gas and oil, deep cyclicals, materials and high growth there's the annual jump-the-gun tech rotation that usually starts the last week in August. But people are anxious to stock up on these laggards.


It's funny, if you asked me if I buy into all of these rotations I would say that everything's become a self-fulfilling prophecy right now. Church and Dwight's (CHD) down, so Kimberly-Clark's (KMB) down, so General Mills (GIS) is down, so sell Colgate (CL) and buy Joy (JOY) and Emerson (EMR) because the FXE has bottomed and Europe's getting better, at least according to their stock markets.


Just the way it is. They all run their course, but, ultimately, the market has a nice bias to the upside with very little data ahead of it.


Random musings: JPMorgan (JPM) is trading as if it is a European bank. Pathetic, but after the mistakes it made people now think of it as that kind of situation. 


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 DVN.

 





More from TheStreet.com

 

2Comments
Aug 8, 2012 2:25PM
avatar
As near as I can tell the equities markets are running on QE and they need another dose of QE soon or they will all be headed down.
Aug 8, 2012 12:09PM
avatar

Yeah not much going on today, so I’ll give a shout out to the New York State Department of Financial Services and Benjamin Lawsky.

 

They’ve upset some of the incompetent good ol’ boys at the Fed and Treasury Department (Office of Foreign Assets Control, OFAC).

 

Finally, an agency that will take significant action with banks operating against US laws and interest and INFORM it’s citizen’s.

 

How pathetic have the Federal agencies become,- Read up on this one and discover just how much fat needs to be trimmed in Washington.

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123
123 rated 1
262
262 rated 2
480
480 rated 3
651
651 rated 4
649
649 rated 5
629
629 rated 6
616
616 rated 7
496
496 rated 8
346
346 rated 9
111
111 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION9
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.