Shorts Get Caught, We Rally Big

AIG (AIG - commentary - Cramer's Take) and Hewlett-Packard (HPQ - commentary - Cramer's Take) can hurt a rally, but they can't kill it. Not with Apple (AAPL - commentary - Cramer's Take) out of iPhones (so much for the Synchronoss Tech buzzkill activation issue). Not with Research In Motion (RIMM - commentary - Cramer's Take) with a new phone. Not with Alcoa (AA - commentary - Cramer's Take) up on takeover talk. Not with the Clear Channel (CCU - commentary - Cramer's Take) deal getting done. Not with a takeover of Electronic Data Systems (EDS - commentary - Cramer's Take) (even if it is killing HPQ). Not with AnnTaylor (ANN - commentary - Cramer's Take) reporting better-than-expected numbers. Not with Encana (ECA - commentary - Cramer's Take) splitting up.

Of course, let's tell the truth, What's really happening here is that shorts pressed their retail bet at the wrong time. Nobody counted on good news from AnnTaylor, and the takeover game's been so off that who would have thought anything good could happen? We are right on the heels of the do-nothing Citigroup (C - commentary - Cramer's Take) meeting and the incredible disaster that is AIG -- Greenburg's letter is amazing -- not to mention the first full weekend of plus-$4 gasoline, so who would have thunk it?

Just a nasty positive surprise.

WOW!

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

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