A market with no memory or conviction
The sudden swings and lurches aren't in synch with the data in any way.
It's not rigged, it only seems that way. I'm talking about that now-ridiculous 150-point decline in the last hour on Monday on worries about Italy, or the big swoon last week over the month-old Fed minutes.
Neither seems to make much sense to me now. The Fed minutes were simply moldy with age, and when we heard from Fed chief Ben Bernanke on Tuesday, it was very clear that nothing had changed whatsoever about his plans to keep buying bonds as necessary. All that sturm und drang and those point-losses for nothing.
How about the last hour on Monday? Sure, there had to be worries about what the Bernanke would say. And there had to be concern and angst about whether Home Depot (HD) could do better than Lowe's (LOW). But let's face it, on Tuesday people figured, "I better sell now, because Italy will be down big tomorrow, and we will open low and get killed."
Did that happen?
Well, the first part sure did. Italy was down almost 5%. But the second part? We went up 90, got hit and then soared past that. The whole worry turned out to be chimerical.
After a while, we have to ask ourselves: What gives here? What are people doing? What's the point of selling down 150 in the last hour?
Again, with mixed signals you can look at the data all sorts of ways. You can say, "Well, with Italy on top of sequestration and blah blah blah, we should be down."
But the sudden swings and lurches simply aren't in synch with the data in any way whatsoever.
Unfortunately, we're in a new pattern here. We're now in a world again where there's no conviction, and everything is one-off or there's no memory, as Doug Kass said earlier Tuesday. The only stocks that seem immune to it are Clorox (CLX), Hershey (HSY), Colgate-Palmolive (CL) and maybe Procter & Gamble (PG).
- Also see: 'Mad Money' recap: don't focus on Italy
Tuesday, the stock rallied back to where it was before the sell-off, because nothing had changed.
You simply had to remember what the market forgot. I think going forward, it's going to be like that market. You need to remember the cards while the market keeps shuffling the deck.
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 HD and PG.
More from TheStreet.com
Bernanke always ...i repeat ALWAYS says the exact same thing.
He is going to continue with his zero percent policy and huge amounts of fiat printing money.
If Bernanke and Greenspan were weathermen....their past experience would have been predicting snow in July and balmy days in January and February. And Wall Street would have still hung onto every word they said, nobody how wrong and dangerous
I read yesterday that Bernanke testified to congress that he must keep buying $85 billion in bonds each month (really printing $85 billion) to keep the stock market from declining, finally publicly admitting to propping up stock and housing prices. The decadence and disgust of this blatant public announcement of his corruption is only surpassed by our passive acceptance of it.
How long can this stock market and government bobble continue? The government is the creator of this bubble (president, congress and fed). When it crashes America is going to be in a world of hurt!!!
I believe that before we ever solve our economic problems and restart America were going to have to go threw this crash.
85 Billion a month buying bonds with printed money? Who's Bonds? The US Governments? For what? Budget shortfall? Expense shortfall? Are they still handing off to Banks that are still taking high risks with the money of whoever's invested with them? Chase just laid off 19,000. Jamie Dimon got a 10 Million Dollar Bonus!
Smells a little Fishy? Whatever!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Keep shopping!!!!!!!!!!!!!!!!!
Once again, Cramer grasps his crystal ball, gazes deeply into and...states the obvious. Let me be the first to say, "Thank you, King of Most Apparent'.
I think anyone who has even half a clue about the markets knows that they're not 'in synch with the data'.
BTW....Kramer is published or writes Articles for several other Financial sites..
Just in case some of you want to go and harrass him there also ??
Poor Jim....Just stick that chin out, Buddy...Or Bobo as the Drunkin' Punkin' calls out...
Party on, Wayne.
Party on, Garth.
Well I would say it was a pretty good Market day, WITHOUT explaining why.....Others can.
Think I would rather read about the "3 biggest asteroid strikes ever..."
Believe I know about a couple, wonder what the third was/where??
Maybe I can learn something?.....This is kind of a dry hole...
Awesome...were saved again...so Fat Cat or ABS should I tap juniors college fund or my next 6 mortgage payments to 'get in on it'?
MORE ON MSN MONEY
Copyright © 2013 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.
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.
VIDEO ON MSN MONEY
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.