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The Signs Behind the Rally

All you needed to know to hit the ball out of the park was evident in the first half-hour of trading.
Author:

Could you have spotted this rally? Let's go over the tells, which were very evident from the get-go. First, we know that the margin clerks have been responsible for a massive amount of the selling. And we know that the selling has been concentrated in some high-profile Nasdaq names, mostly biotech and software.

So this morning, when Accounting Problem Poster Child

MicroStrategy

(MSTR) - Get Report

started up, that was a good sign, and when

Rambus

(RMBS) - Get Report

and

Human Genome Sciences

(HGSI)

, two total creatures of margin, roared up, that was a great sign. The fact that they went up so much from the get-go that it would take them a long time to fade gave us respite from the margin clerks' butcher knife.

Helping to keep the bullish stampede going was the price target boost in

Intel

TST Recommends

(INTC) - Get Report

and a prospective split in

Cisco

(CSCO) - Get Report

(goes in tonight). And the amazing comeback of

Micron

(MU) - Get Report

from after-hours hell told you that the shorts weren't going to win today. Finally, we saw the peak and fall of the

Dow

and its value buddies. That happened immediately.

All of this was available in the first half-hour of trading. It was all you needed to know to hit it out of the park today.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco and Intel. 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

jjcletters@thestreet.com.