This Rally's Bringing Out the Buyers

Real deal. You can feel it. You can feel the pain from the people on the sidelines. They aren't talking about "bear-market rally" anymore. They are talking about Dow 7600, Dow 8000.

They are right to talk about it.

We are at the critical juncture where there are lots of people who are saying, "I want to wait for a pullback." You see what happens then when we even have 15 or 20 points of weakness in the Dow -- buyers come flying in, and when they do, boom, they move stocks.

We also are seeing stocks that make bids have their stocks go higher -- when has that happened? You sure didn't see that with Dow Chemical (DOW - commentary - Cramer's Take). Look at Gilead (GILD - commentary - Cramer's Take), climbing on the CV Therapeutics (CVTX - commentary - Cramer's Take) buy. Merck's (MRK - commentary - Cramer's Take) been rallying ever since the Schering-Plough (SGP - commentary - Cramer's Take) buy. You know what that means. You are seeing companies having their stocks go up, not down, when they buy someone. Let me tell you why this is so important: because every company's management believes their stock is too cheap.

They have been reluctant to buy other companies because they believe their stocks are too cheap, but all they do is get cheaper.

Now, if you see your stock go UP when you buy someone, what are you going to do? I think that you call Goldman Sachs (GS - commentary - Cramer's Take) and you say "Give me a list of companies I can buy in my industry, I am ready to do a deal."

The money will be there.

Don't forget, when assets stabilize, the hedge funds are going to borrow money from the Fed as part of TALF, and they are going to go shopping, too.

This is real.

Thanks, Dougie, for a call of a lifetime in getting us in.

Random musings: Eric Oberg is out with a rigorous take on the uptick rule and how to make it work this time, and it's a must-read. Remember, Oberb's a practitioner who served as a managing director at Goldman Sachs.

At the time of publication, Cramer was long Goldman Sachs and Gilead.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

TheStreet.com has a revenue-sharing relationship with Amazon.com under which it receives a portion of the revenue from Amazon.com purchases by customers directed there from TheStreet.com.