Jim Cramer: Be Suspicious of a Rally Based on Nothing

Author:
Publish date:
Video Duration:
0

Jim Cramer wrote about multiple expansion in his Real Money column Wednesday morning.

"When you see a stock levitate, that's often pure multiple expansion," said Cramer. 

"I don't trust multiple expansion, not that I am necessarily drawn to multiple contraction, lest I stumble on a value trip, although I think CVS's merger with Aetna doesn't produce a black hole as much as a rebirth," Cramer wrote.

Watch for stocks that are moving with reason, he said. For example, Nike (NKE) - Get Report is up because Adidas (ADDYY) is down. United Technology was up Wednesday morning when Boeing (BA) - Get Report was up.

Want more exclusive tips from Jim Cramer? Lucky you, his next call kicks off March 14 at 11:30 E.T. Here's how you can watch.

Related. Jim Cramer: I'm Not Buying This Tech Multiple Expansion

Will You Have Enough Money Retire? Want to learn about retirement planning from some of the nation's top experts? Join TheStreet's Robert "Mr. Retirement" Powell live in New York on April 6 for our Retirement Strategies Symposium. For a limited time, tickets are available for $99 for this full-day event. Check out the agenda, learn about the speakers and sign up here.

Watch Jim Cramer's Daily NYSE Show and Replays Below