Every July earnings period something happens on Wall Street that goes largely unnoticed on Main Street, but hits home where the hedge and mutual funds live.
It's the unveiling of next year's numbers. Every year analysts have to put some numbers down for next year and invariably they are higher. This new number post invariably benefits the cyclicals which always look dirt cheap on next year's numbers. That's just their nature.
I think we may be watching the beginning of a cyclical rally that could last right through until the end of the month, based on rosy scenarios being thrown out for next year.
I am watching this
level. If we take it out big, I will view it as a sign that the rally I am seeing has legs.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. 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 at