Mutual Funds Put Bears on the Run

Mutual Fund Monday is alive and well and coming in at the end of the day after the bears have salted the session with puts. Once again we saw what happens when money comes in: It simply overwhelms whatever is dragging the market down.

Today's bullish action really had its start with some small recovery in the Nasdaq as well as a persistent bid in JPMorgan Chase (JPM - commentary - Trade Now). It is a testament to what is continually regarded as the "resiliency" of the market, but is really just an endless wave of money that goes to mutual funds as people feel that the coast is clear and that the "rally in a bear market" is just total claptrap.

Today was tougher because of the obvious profit-taking in Apple (AAPL - commentary - Trade Now), of which I hope you took some off. Tomorrow should be Morgan Stanley's day for reiterating Apple, because the analyst predicted aggressive price cuts, and we sure got them.

I want to emphasize that this week is a light with data, and all you are going to hear about is the catastrophic rise in interest rates, which is really no big deal at all, and the concomitant call for the Fed to raise rates, something which our colleague Ron Insana dispenses with in brilliant fashion on this cyber-page. The notion of a raise is such a joke, but it is something topical to talk about.

Fighting this market is a huge tape-fighting exercise, especially given the money in and the dearth of data.

Tonight the story will be how the American market threw off the European yoke. It will go round the world, making it difficult for the bears overnight.

Random musings: Ursa bear Paul Krugman talking about a turn in the economy this summer. Pretty amazing. That's in a couple of weeks! ... so much for that nationalizing bear.

At the time of publication, Cramer was long JPMorgan Chase.

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Know What You Own: In Monday's trading, the most active stocks include Bank of America (BAC - commentary - Trade Now), Citigroup (C - commentary - Trade Now), the Financial Bear 3X (FAZ - commentary - Trade Now), the S&P Depositary Receipts (SPY - commentary - Trade Now), the Financial Bull 3X (FAS - commentary - Trade Now), the Financial Select SPDR (XLF - commentary - Trade Now) and Ford (F - commentary - Trade Now).

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