Cramer: A Market That Defies and Defies
Editor's Note: This article was originally published at 7:35 a.m. on Real Money on Sept. 12. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.
NEW YORK (Real Money) -- Can the S&P 500 go up for an eighth straight session? That would make for the longest winning streak since the beginning of July, when the 10-year U.S. Treasury at last settled in after a wild ride.
Can the market really be on the verge of taking out the early August high that is tantalizingly less than a point-and-a-half away from the current level?
Sometimes I think that I shouldn't even bother to ask anyone, because this market just defies and defies and defies the bears, and is climbing the steepest wall of worry I can recall in recent memory.No, it is not as dramatic as the wall scaled after the financial meltdown, the climb that began in March of 2009. But it is dramatic nonetheless, and it rests on two different pillars. First, it only sees what's good, and not what's bad, or it spins the bad in a good way. Second, when domestic issues get rough, it shifts focus to something that's positive globally -- and vice versa. Wednesday, for example, was a quintessential day in this bizarre bull run. Instead of fleeing the homebuilders on some incredibly horrendous mortgage-applications number, bulled-up investors bought these stocks, betting that the worst must be over. Talk about turning a negative into a positive. Meanwhile, not since 2008 have we decided that China has now trumped our own ability to move the cyclical needle. Ever since the Baltic Dry Freight Index bottomed in August and has never looked back, we have seen industrials catch bids in any moment when there's been dramatic stock market weakness. So who am I to say that now, with some Syrians firing missiles at Israel's Golan Heights (did anyone not see that coming?) that the market will at last break its winning streak? We saw some truly terrible numbers last night from Vera Bradley (VRA) and Men's Wearhouse (MW), on top of cautionary guidance from PVH (PVH) and hideous outlooks from Francesca's (FRAN) and Jos. A. Bank (JOSB). Despite this, though, for all I can tell someone will see a silver -- not moth-infested -- lining in the apparel stocks. Maybe they will just go buy shares in TJX (TJX), the closeout company, to exploit the trend.
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