This column was originally published on RealMoney on Aug. 14 at 11:39 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
If you want to see the power of a cycle, look at
. Here's a company that had a CEO who really drove the company, Steve Reinemund, and today he announces his retirement. It is a shock; I thought he would work another four or five years, as he has only been CEO for five years. Given that time, he has been unparalleled in his performance among the soft-goods companies.
Normally you could expect a guy like that to matter to the stock. But not today. Not with all of the recession stocks ramping on the idea that the
must do more to kill the economy to stop inflation. Not when the pharmaceutical index (DRG) is breaking out. Not when the
Procter & Gambles
are on fire.
At this point we are going into overdrive on these stocks, as we head into the fourth month of outperformance. They just simply can't be stopped right now.
Of course, you could see some sort of options decline -- the PG and the
seem bound to finish at their strikes and not above them.
Yet, it is important to see the tug and recognize the power of it, as it is stronger than gravity right now.
At the time of publication, Cramer was long Altria.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.