Cramer: Preaching to the Nonbelievers
This item originally appeared at 4:37 p.m. Thursday on RealMoney. Click here for a free trial, and enjoy incisive commentary all day, every day.
How about this new contra-hour pattern? We get a selloff between 2 p.m. and 3 p.m. EDT, but it doesn't wreck us -- it recharges us to go higher!
I have been trying to spot patterns in this market that are
different from the last two years
and I don't just mean that we are having as bold a rally as we did in November of last year off the horrid October decline. I am looking exactly for this kind of pattern that breaks with the horrid past.
Now this intraday move is incredibly bullish because it smashes the pattern of what had been accelerated declines into the close. If you buy this dip, which is becoming a typical dip, you get your best price of the day.
Look, I wouldn't be citing patterns if it weren't for two reasons. First, the majority of the people on
RealMoney
are frightfully bearish and I want to show technically and fundamentally (check out my recent "State of the Market" pieces:
,
,
and
) why I think we are going higher. Second, I am constantly looking for anomalies that make
.
So, we see gold spike and we expect stocks to go down and bonds to tank, but bonds have their best rally in ages and stocks keep climbing. Once again I have been saying that gold is not necessarily a tell of inflation and you know you couldn't get that bond rally if it was. It is more likely a tell for ETF buying! Or perhaps a weak dollar, but the latter lost a lot of luster as a thesis after this monster Treasury move.
Now we have more concrete info: according to the Chemical Checkpoint note from
BB&T's
(BBT) - Get Report
Frank Mitsch, one of my favorite pieces of research, rail car weekly numbers have broken out to the upside. Weekly numbers were
up
8.8% year over year. I remember when they were routinely
down
20%.
You know what that means -- chemical companies, fertilizer companies, car companies and grain companies are doing huge business now. You cannot deny that. I know my friend and colleague Matt Horween, who recently penned a terrific series on the state of America, points out that the chorus here seems out of step with the action, something I could not agree with more and another reason I like the guy so much.
Of course I thought that
Kraft
( KFT)/
Cadbury
( CFY) and
Dainippon
/
Sepracor
(SPR) - Get Report
and
Baker-Hughes
(BHI)
/
BJ Services
BJS
( BJS) would mean something to people on the site. I thought that people would recognize stocks may be cheaper than we think. And I thought that all of the superior pre-announcements like
Skyworks Solutions
(SWKS) - Get Report
or
Texas Instruments
(TXN) - Get Report
or
Altera
(ALTR) - Get Report
would help.
Nope.
But I am not stopping. I am going to continue to come up with empirical evidence for why stocks are and can go up in the greatest rally of my lifetime.
At the time of publication, Cramer had no positions in the stocks mentioned.
Jim Cramer is co-founder and chairman 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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