Looming Cash Piles Bode Well

Cash is not king if you are an arb or a private equity king. You have to put it to work, pretty much if you like it or not.

That is why this is a pretty bullish moment in stocks. Archstone's (ASN - commentary - Cramer's Take) going to close soon. So is TXU (TXU - commentary - Cramer's Take). Alltel (AT - commentary - Cramer's Take) won't be far behind. You are looking at $100 billion worth of deals that are closing.

Meanwhile we haven't had an IPO worth mentioning that weighs in anywhere near that. The buybacks during the summer were monstrous. Cash doesn't yield as much as it did and interest rates are coming down. Oil has stabilized and could be retreating, which is bad for the oil stocks but good for those stocks that have been pummeled by higher energy costs. The dollar's getting stronger. The foreign investors will take note and begin to buy more than just Commerce Bancorp (CBH - commentary - Cramer's Take).

This is the scene for October and amidst the talk of the 20th anniversary of the crash (oh my am I old that I remember it like yesterday). We are set for a run on higher prices once we digest this last gain and get through what should be a fairly benign earnings period.

I know that the market has become too narrow with the four horsemen -- I have to admit my best call in about a decade -- continuing to levitate and everything else stall out. That's being viewed as an immense negative. But what happens if things do broaden out? Then you will feel like a total dope for selling because the market funneled into those four names.

Right now you can see the set up. People have gotten bearish again because there may not be a Fed ease in October, retail sales are bad and gasoline is starting to go higher.

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At the time of publication, Cramer had no positions in stocks mentioned.

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