Trapped Shorts May Be Giving Us a Lift

If I didn't know any better, I would say that someone got trapped shorting the best China stories yesterday, some Quick Draw McGraw shorts that just jammed 'em, presuming that the Chinese had had enough with us after the tire decision.

The quickest ones to react were the casinos, as it was easy to see that the Chinese would meddle with Macau. They should do more meddling, as Wynn (WYNN - commentary - Trade Now) has now exceeded my longstanding price target and Las Vegas Sands (LVS - commentary - Trade Now) is back from the dead with a vengeance.

Our coal companies are so strong I am beginning to believe that not only are tariffs not going to hurt us, but it looks like Joy Global (JOYG - commentary - Trade Now) and Bucyrus (BUCY - commentary - Trade Now) just got some big orders or something. Steel tariffs? Dan DiMicco may want them and may have talked down Nucor (NUE - commentary - Trade Now) today, but that's not working. The stock's just ramping.

Caterpillar (CAT - commentary - Trade Now) can't be stopped, and I have a feeling that someone must have been shorting Deere (DE - commentary - Trade Now), too!

There is a remarkable rally going on here with our Chinese plays.

The shorts are caught.

Maybe that's the levitation.

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

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