TheStreet.com Staff
The shorts have had their feet held to the fire in several key stocks, and that's powering the overall market, Jim Cramer said on TheStreet.com TV's Wall Street Confidential video Thursday.
"It is a tremendous moment for the longs here because they have really caught the shorts with their shorts down," he said. Apple (AAPL Quote - Cramer on AAPL - Stock Picks), Genentech (DNA Quote - Cramer on DNA - Stock Picks) and Alcoa (AA Quote - Cramer on AA - Stock Picks) are three stocks the bears were counting on to "screw up," he told Aaron Task, the host of Wall Street Confidential. However, Apple turned out to be much better than expected, which caused a tremendous short squeeze. And after four consecutive disappointing quarters, Genentech just announced its first "really good" quarter. "It was a labored effort, but they did it," he said. The bears also lost out on Alcoa, which has had a "tremendously horrible start to earnings season for the last three quarters," Cramer said. Plus, Google raised its numbers rather dramatically and Sears (SHLD Quote - Cramer on SHLD - Stock Picks), another heavily shorted name, reported better-than-expected numbers. With Apple, Genentech, Alcoa, Google and Sears, which he owns for his charitable trust, Action Alerts PLUS, Cramer said, "You have literally got five fabulous short positions put on that just went up in smoke." "That's why you're seeing this rally," he continued. "It has nothing to do with the day-to-day fundamentals."
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