Market forecast: Thick haze for days
With OPEC's surprise decision not to increase oil production, the Senate's vote on debit card fee limits, and Ciena's disastrous earnings, Wednesday's events could cloud the market for a while.
It's terrific that we regard each day as a new day around here, as in "New day, futures are fine, come on out and play." But we often forget that there was damage done the other day, damage that isn't repaired by the sun going down, the moon coming up and then the sun returning to the horizon.
Wednesday the damage was horrific. I don't know a soul who even thought that OPEC would do anything but try to figure out how to make sure alternative energies like solar or oil sands or biofuel would be priced out by $80-$90 oil, long thought to be the price point at which alternatives get dicey.
OPEC always seemed to have an economic imperative: How to make the producers richer and keep consumers addicted. It used a drug dealer motif to do so.
But Wednesday we saw that some OPEC members don't care about stifling alternatives. They care about stifling "the West." They care about showing the developed nations that they are in charge. They care about hegemony!
Oh, doctor, not what we wanted. But we act as if, OK, that's fine, we can take lower oil off the table and still rally.
To which I say . . . HOW? How is that going to happen? Give me a reason that should happen when we are all getting around to the idea that consumers are slowing spending because of the tax of oil?
Doesn't matter. People want to just brush it off.
What else did they think won't matter today? How about the Senate and banking? Many people actually thought the government was done being tough on banking. They were wrong! It's worse than anyone thought, where another source of income, the debit card swipe fee, is being gutted on behalf of consumers -- or, to be more accurate, retailers. You can't yawn about this stuff, because it is ideological, for heaven's sake!
Disastrous. It was so bad I couldn't figure out how much was poor execution, how much was demand and how much was a slowing in the world's telecommunications spending.
All in all, Wednesday was a day that can't be contained in a 24-hour period, put in a box and left in the corner. It is front and center.
And it will be tomorrow, too. Next week, even. In fact, it's the environment we are in. It's like smog. Doesn't change with the dawning and setting of the sun.
At the time of publication, Cramer had no positions in the stocks mentioned.
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I wish I would of "gone away in may" I wish I would of not listen to the Pundits about Citi...saying it's a buy, when they announced a reverse split. "People should run, not walk when they see a reverse split....". 80% stocks 20% cash is to risky. 20% stocks 80% cash is where we need to be!
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Please do not throw any unneeded money you may have into the dust bin of history. Instead, send me the money you seem to no longer need, and I will dispose of it for you.
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