Is it sustainable? How the heck should I know? But I will tell you one thing that is significant about this rally. It was not led by the usual suspects. The companies that did well on Monday included the banks, the restaurants, the cyclicals, and, at last, the drugs.
Tech rallied too, but not first. In fact,
were both down badly at one point, and Microsoft only took off with the big NDX buy programs at the bell.
So often we have to endure these snap judgments about rallies. The volume is never great enough. The breadth is never wide enough. But I can count on two hands the number of days that are truly "textbook great" in the last decade, and in the interim we moved up 6000 points.
No one knows what foundation lurks under a real rally. To me this increase, coupled with a fairly good advance decline, amounted to something that could see some followthrough. I would not write that if it were simply the usual suspects -- Intel, Microsoft,
-- rallying and others catching up. In fact, that's a prescription to bet against any further rally.
The whole time since December the rally had a bizarre
-type coloration to it. Be in the 20, or be square, kind of thing.
Monday's rally was just the opposite. You made your best money in sleepers like
, two of my faves. You made money in groups that have lagged so badly I thought they had fallen off the face of the earth.
That's positive. The more stocks that go up, the healthier the market it. Is it more important than new highs and lows/put call/oversold overbought or percentage Dow and S&P gains?
This rally belonged in the W column without an asterisk. If you are long that's all you can hope for.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At the time of publication the fund was long Intel, Microsoft, Cisco, Chase Manhattan and Anheuser-Busch. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending an email to firstname.lastname@example.org.