TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, has been talking the strong dollar for a while, as it's been a negative for U.S. corporate earnings. But, at least for now, the "super freaking strong dollar" is cooling its jets.
The market had a slew of reasons behind its massive selloff to start 2016. But in February, some of those catalysts turned from negative to positive, including the Federal Reserve, China and commodities (namely oil).
The overhang of lost profits caused by the strong dollar not only weighs on corporate earnings results, but also dampens investors' spirits. However, the dollar is actually down on the month, despite rallying higher over the past few weeks.
When combined with the other positive catalysts, Cramer says the decline in the greenback is helping investors get on board with buying stocks. Specifically, he adds, it's really giving a boost to railroad stocks and international companies.
M&A is also playing a role -- something that had been completely nonexistent since the start of the year. That is, until recently. Cramer highlighted the Apollo Funds' purchase of ADT (ADT) - Get Report for roughly $15 billion, Ingrim (IM) acquisition by a Chinese firm for $6 billion, and chatter about a mega-merger between Honeywell (HON) - Get Report and United Technologies (UTX) - Get Report .
Although it seems the monstrous deal "ain't gonna happen," Cramer said, it's still noteworthy that it was out there.
While the U.S. dollar isn't plummeting and M&A deals are springing up like mad, it's two more encouraging signs that things may be headed in an upbeat direction.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.