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Cramer: Molehills, All of Them

Editor's Note: This article was originally published on Real Money at 7:58 a.m. EDT on July 16. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

NEW YORK ( Real Money) -- Maybe we just fret too much. Think of what's happened just in the last two months. We fretted about a dramatic increase in interest rates. What happened? We got one -- a huge percentage gain. What does the market do? How about, the S&P 500 has its longest winning streak in nine years? How about, the Nasdaq 100 goes up for 14 straight days, its best streak since 1990. We were supposed to be frightened out of our shorts with a run to 2.7% to the 10-year U.S. Treasury, up 100 basis points in a straight line.

As bonds overshot their mark -- meaning that there was no real economic reason for rates to move up that dramatically -- and then came in, it became a buying opportunity. That's right. Something this negative, this horrible and this competitive with stocks became an honest-to-goodness buying opportunity. It had to have been the bears' worst nightmare. This was an event that was startling, profound and obviously negative for stocks -- and it turned out to have been a terrific chance to get in and catch the next leg of this one-sided bull fight.

Or how about gasoline? The average price at the pump is flirting with $4 per gallon. This has to have an impact, right? It's a tax -- a direct tax that takes disposable income and flushes it down the toilet of Exxon Mobil (XOM). How in heck can that not hurt?

So we do we do? Why not short all of retail? Why not short Six Flags (SIX) and Cedar Fair (FUN) and Disney (DIS), the latter especially since "The Lone Ranger" was such a bomb? OK, so you made a couple of bucks, but it wasn't really worth the risk in retrospect. Yet I am sure more people are now trying it again, betting that the stocks don't reflect the higher prices of gasoline that they might be paying this weekend.

Of course, cars use less gasoline than they used to -- but, more important, nobody has belly-ached about the impact of higher gasoline, other than Darden (DRI), which is the parent of the Red Lobster and Olive Garden restaurant chains. Without the grousing, you can't get the big down days you thought you should have.

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