Economics of Money Management

The darned Goldman (GS - commentary - Trade Now) seller went away! FedEx (FDX - commentary - Trade Now) reversed back up! Now Boeing's (BA - commentary - Trade Now) almost up. And the action let us down again.

There's been a great debate going on here, with Doug Kass making it very clear what's happening -- namely, momentum chasing. I would rather look at it as the economics of money management. We had a nice dip today. Of course, it wasn't a dip that went negative. It was just a dip from up 130 to about 80.

What happened? Shorts flew in and covered -- thanks, Doug, for seeing that one. Buyers came in who felt lucky to be given a reprieve. And the bear case, which was somehow linked to Goldman's CIT Group (CIT - commentary - Trade Now) fee structure (and which I hate to remind people is actually a positive, not a negative), didn't hold up for the afternoon.

I think the single-most important negative has been turned into a positive: If we didn't get killed Friday on a number that was contrary to anything good, a number that could send the whole market down huge if it isn't reversed in subsequent numbers, then what's out there in the next few weeks that could annihilate the market.

I am not saying this is my view. I worry about Thursday's retail and payroll numbers. I worry about corporate earnings not showing anything on the top line and that hacking jobs won't be enough to move the needle. I worry about Washington and its negative and potentially blind-siding impact on the markets.

One thing I am sure of, however, is that the economics of the money management biz, with its 59 days left, tilts the deck 51-49 in favor of the bulls, and that edge could be enough to make things more benign than the raving bears think.

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

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

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