The Market Was Ready to Break Out

The charts told the story. The charts over the weekend which showed the most reverse head-and-shoulders patterns -- primed for big move-up -- that I can recall in ages. There were so many potential breakouts, in pretty much every industry from Abercrombie & Fitch (ANF - commentary - Trade Now) and Boeing (BA - commentary - Trade Now) to VF Corp. (VFC - commentary - Trade Now) and VMware (VMW - commentary - Trade Now).

People keep forgetting the power of Mutual Fund Monday. They also forget that a late-Friday ramp/markup may simply be fear of getting swept up in a tsunami of buying like we are having today.

I have never, other than right after the first Gulf War began and right after the second Gulf War began -- both what I called "exquisite moments" -- seen such buying. People are buying counter-intuitive stocks: minerals and mineral users, oil pumpers and oil needers, borrowers and lenders, stocks that need the consumer to spend and stocks that indicate the industrials are on fire.

Meanwhile the chattering classes remain suspicious -- low volume, weak dollar, rising mortgage rates, low put-call, overbought market, too many bulls.

The usual plethora of negatives that have kept people out the whole way.

I have no antidote for those people. I know that when I read a great piece of research this weekend about why you have to avoid this market for all of these reasons and the fact that you can't get out when it turns, I had to laugh. You can get out, you can move billions and billions of dollars right here, right now in this market, using futures or offering stocks.

You can move any of the high-profile downgraded stocks from last week like Caterpillar (CAT - commentary - Trade Now) and Parker Hannifin (PH - commentary - Trade Now) -- remember that machinery downgrade? You can move pretty much every tech stock: 3 million shares of Apple (AAPL - commentary - Trade Now) would be taken here, no problem.

So the canard that you can't get out is, well, a canard.

Doesn't matter.

I shuddered this morning when I saw all of the bears in our poll. I had no idea how they could get in.

What I always forget is that they will never get in until we go back down and erase this move.

Their certainty of that happening is what's so upsetting to me.

I just don't get it. I never have that level of certainty. It's way too dangerous ... and arrogant...

At the time of publication, Cramer was long VFC and VMW.

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