I know from Twitter @JimCramer that people continue to have one foot out the door in the group. I reiterate that, while they are certainly more elevated than when I started pushing them, they are not expensive. The best, American, is selling for 9x earnings. Everyone's loath to give these a price-to-earnings multiple of any decent size, but that will change when the cash piles up and the dividends and buybacks get humongous for Delta and American. That's what happens when there is no competition. Plus, travel continues to boom. TripAdvisor (TRIP) was the biggest percentage gainer in the S&P yesterday. Of course Priceline.com (PCLN), a momentum monster, roared higher. It always seems to on these big up days.
Speaking of places that are rallying where there aren't supposed to be rallies, how about the endless rallies in these remaining tobacco stocks -- Reynolds (RAI), Lorillard (LO), Vector Group (VGR) since the year began? Yesterday was just another day where they went up on both takeover chatter and e-cigarette developments. They aren't growing like weeds, as we see with these pot drugs, but the runs are pretty stunning from these once-sleepy stocks.
Finally, the brokerage stocks seem to have been anointed as if we are both going to see more money into their coffers and higher short-term rates. We haven't really seen either yet, but Schwab (SCHW), eTrade (ETFC) and Invesco (IVZ) are all on the run. Is the individual investor really back? The stocks said yes on Tuesday, in keeping with the all-time highs we're hitting on many indices.
These are phenomenal moves for stocks that aren't supposed to have them. They are one of the reasons why the bears just keep being overrun. They are a sign of raw power, power that's based on earnings, on multiple expansion and on a sense of optimism that, at least for yesterday, certainly panned out.Random musings: My friend Eric Oberg has penned the single-best, most-honest piece about Bitcoin, and you have to read it to understand why Warren Buffett's going to be right when he says it might not exist a dozen years from now. Eric, late of Goldman Sachs (GS), has done fabulous work before on financial engineering gone bad. This is his best! Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long JNJ.
Editor's Note: This article was originally published at 8:03 p.m. EST on Real Money on March 5.
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