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NEW YORK (TheStreet) -- The markets are always thinking five steps ahead, even if those steps are all wrong, Jim Cramer told his Mad Money TV show viewers Wednesday. Cramer said there are five groups of investors fighting over the direction of the markets, making for a confusing jumble of cross-currents.
The first group believes the U.S. economy is strong and only getting stronger, Cramer said. This group is buying anything tied to the economy and is only concerned over the stronger dollar.
The second group believes the U.S. economy has hit its peak and is expecting the Federal Reserve to begin raising interest rates any moment to spoil the party.
Cramer said the third faction are people like him, people who care about individual companies and their earnings. This group buys what's working and has piled into the biotechs, social media stocks and cloud companies as positive earnings came to light.
Meanwhile, the fourth group is focused on the geopolitical and how sanctions against Russia will hurt the industrials and the oils. This group is selling on a regular basis.
The final group is enticed by rumors and special situations. This group is buying what the activist investors are buying and are looking for the next possible takeover target in companies like Yelp (YELP).
All together, these groups are fighting one another, Cramer concluded, which is why the averages barely budged in today's session.
Executive Decision: Tom Quinlan
For his "Executive Decision" segment, Cramer spoke with Tom Quinlan, president and CEO of R.R. Donnelley & Sons (RRD - Get Report), the commercial printing and communications company that just delivered an earnings beat of 7 cents a share while reaffirming full-year guidance. Shares of Donnelley are up 40% since Cramer first recommended the company 13 months ago.
Quinlan explained that while commercial printing will always be at the core of its business, Donnelley helps companies provide a connected experience for their customers whether it's in print or digital.