The Rubber-Band Market

The resilience of this market is overwhelming at times. Last week all we heard was that all the secondaries were overwhelming the market.

Today the banking sector -- the most hard-hit by the secondaries -- is on fire, confirming that the supply doesn't damage the story if the story's a good one.

Or how about the natural gas stocks? These have more lives than your average cat. Here we go again with the rally in Devon (DVN - commentary - Trade Now) -- what a bounce back -- and the fantastic comeback in Schlumberger (RIG - commentary - Trade Now) and Transocean (RIG - commentary - Trade Now). Keep an eye on Anadarko (APC - commentary - Trade Now), still weighed down by the secondary but clearly a coiled spring ready to happen.

Then there is Wal-Mart (WMT - commentary - Trade Now). People sold it on the revenues, but it is right back to where it was sold and is ready to roll again.

Last week Apple (AAPL - commentary - Trade Now) was hammered for whatever reason, and now it is bouncing back -- as is Google (GOOG - commentary - Trade Now), which I think is way too cheap vis-a-vis the quarter.

And then there is the housing cohort: Black & Decker (BDK - commentary - Trade Now), Home Depot (HD - commentary - Trade Now) and Sherwin Williams (SHW - commentary - Trade Now). I know that Lowe's (LOW - commentary - Trade Now) said that it didn't have good indoor sales -- plumbing and cabinets -- but can that be so far behind that it wouldn't be worth buying a little Masco (MAS - commentary - Trade Now) and Fortune Brands (FO - commentary - Trade Now)?

I also see the restaurant group ramping again, with Yum! (YUM - commentary - Trade Now) catching a bid. You know that Panera's (PNRA - commentary - Trade Now) my favorite there.

Lots to like. Lots to buy. And just when everyone had given up on this market because of a belief that we had gone up too far too fast.

Conventional wisdom fools people again.

At the time of publication, Cramer was long Home Depot, Yum! Brands and Wal-Mart.

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