Jim Cramer fills his blog on
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- a dearth of sellers,
- retail's resilience, and
- Obama's intransigence over natural gas.
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Desperately Seeking Sellers
Posted at 4:23 p.m. EST, Feb. 26, 2010
Doesn't it feel like there's no stock for sale? During the correction at the end of January and the beginning of February, you could find no bids. You would be "underneath" and get crushed for almost all the good stocks. Consider that
(AAPL - Get Report)
went down to 191 eleven days ago and it did so in a heartbeat. Nothing but sellers. Now it feels like there isn't a share for sale.
(CVX - Get Report)
the same: $79 to $69 in a week, losing scads and scads of points.
(VZ - Get Report)
(T - Get Report)
were also typical. It was like there was no one around and no floor. With these two, the dividend seemed to mean nothing.
The buyers were just gone. But the sellers? They were there in force? Over and over. Stupidly selling into nothingness.
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Now it has the same melt-up feel as it had meltdown. Nothing around to buy. Remarkable.
Seeing as there is nothing to go around, you could see the following happen: we get oil back to $80, gold up again, the dollar down again and a breakout on so many charts (see my
post from Sunday
), and the conversion from correction to bull will be swift.
Which is why we can't take a melt-up off the table, especially with Congress doing nothing and China on vacation.
I have been adamant that this market is so random and capricious that anything can happen day to day.
But consider a scenario in which you get the oil/gold/dollar complex coming up bullish again, and tell me what happens if there are no commodity-type sellers?
Because it sure doesn't seem like mutual funds have anything for sale.
is cheap, but sounds like it has no momentum short term. At least that was my take-away from the interview with Greg Wasson, the CEO. ... And it's amazing to me that so few big-time firms cover
(RRC - Get Report)
and that most of the firms that do are not that positive. If you look at the valuations for other Marcellus properties, ones that aren't as good as RRC, you know this thing could double.
At the time of publication, Cramer was long Apple and Chevron.