A New Kind of Market

The problem with basing your investment view on the notion of a "blah" market when it comes to reaction to news flow is that a bunch of "blah" markets that churn higher is better than the one-day wonders we used to have.

For example, Europe just put in six "blah" days, but they were all up! So if you are sitting here saying, "This market doesn't respond to good news," perhaps you should be saying, "This market doesn't respond to good news like it used to."

For several years when we got big news, we went up or down 200 points in a heartbeat. I hated that pattern, because the going down was harder and heavier than the going up, and it all seemed downright phony.

The problem with betting against this dull market is that the bias is up, and we get rolling gains in sectors (see my long sector analysis piece if you want more). To me, that means, for instance, the Bank of America (BAC - commentary - Trade Now) / Citi (C - commentary - Trade Now) / Wells Fargo (WFC - commentary - Trade Now) / JPMorgan (JPM - commentary - Trade Now) sector hasn't moved of late, it's just drifted -- but that isn't a negative cut but a positive one (I disagree with my friend Helene Meisler here) because in this market what you really have is a big move -- like in the banks -- and then no noticeable pullback as we await the next piece of news, news that typically will propel them higher, which is where they are going.

Of course, it isn't easy to discern that this may be a new market -- and even a good one -- as we see a company like Apple (AAPL - commentary - Trade Now) roll out a new product and the stock goes down! But that's been the case for all the launches, all of them. We will see Monsanto (MON - commentary - Trade Now) preannounce and bet it is the beginning of the negative preannouncement season, but we discount that Texas Instruments (TXN - commentary - Trade Now) and Skyworks (SWKS - commentary - Trade Now) preannounced to the upside. Monsanto has been a case of endless overestimation by the company in its Roundup forecast. Consider Roundup like the ultimate drug franchise that is about to go off patent and the Chinese -- the Chinese! -- want to own the market.

So we get high-profile preannouncements and doggy action in tech via Apple and we draw the wrong judgments. Sector after sector is breaking out. Just get ready for the next big move, which is typified by the resting action we are seeing in the bank stocks.

Random musings: Congrats to Helene Meisler and to Bert Dohmen for their negative visions on MON, a stock that is definitively in my sell block on "Mad Money."

At the time of publication, Cramer was long Bank of America, Wells Fargo and JPMorgan.

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