This article originally appeared on Jan. 31, 2014, on RealMoney.com
Let's not go crazy here.
The sellers were fearful, and the rally isn't going to dissuade them from coming back. There's enough angst to expect that those who were selling are worried about something happening this weekend.
Instead, let's recognize a few things that are working:
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- Wal-Mart's (WMT - Get Report) up, so let's recognize that the bad quarter was baked in. Notice Costco's (COST - Get Report) hanging in there, too.
- The shorts are getting killed on Caterpillar (CAT - Get Report), now because of the amazing number from Manitowoc (MTW - Get Report).
- Under Armour (UA - Get Report) is a classic example of a stock that the buyers can't stay away from and the shorts are getting crushed in.
- We may be worried about the Chinese consumer, but one look at Wynn Resorts (WYNN) tells us that could be a misplaced worry as Macau is behind that movement.
- Lower interest rates may be a tell of danger in some parts of the economy but not the homebuilders, which are lapping it up.
- The independent oils are at last catching a bid. Could people be realizing that there's little value to Exxon Mobil (XOM) and Chevron (CVX) and that it is time to circle back to growth oils?
Just some observations that belie the notion that it is the end of the world, and it reinforces my belief that when the futures wipe out the opening on Friday, its almost as good a buying opportunity as it is a selling opportunity on those big up Monday mornings.