This column was originally published on RealMoney on April 23 at 7:02 a.m. EDT. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.
We could use a breather here. I just don't know if we will get it.
So many stocks went up so much last week that you could argue that too many were propelled by the machinations of options expiration. I just don't believe we should see so many stocks that didn't report great quarters as high as we have seen them.
We had a lot of
, just roar upward a huge number of points without any profit-taking whatsoever.
It is entirely possible that those leaps will have firm footing. We have seen that happen during the periods when we have tacked on 1,000 points in the Dow. But right now there's no skepticism whatsoever about this move, and I can't recall moves that were permanent where you didn't have more skepticism.
This is a key week. There are no expiration games. I am keying on these stocks that reported just so-so earnings in the last few weeks to determine whether it was expiration that drove things, particularly Friday:
Illinois Tool Works
These companies all started going up at the end of the week, and I believe they were simply swept up by futures. If they begin to go down we will get a sense that a non-futures related market may not be as robust as last week and could be vulnerable. It's the weak companies that fail first in a repeal of a good run.
Let's take a look.
The strong bond market, which was not supposed to be in the cards for the perma-inflationists, of which there are many, gave an extra boost to the high multiple companies last week -- everything from
. If we go to 4.5% on the 10-year, I think we will get another wave upward.
At the time of publication, Cramer was long UnitedHealth Group.
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
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