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Jim Cramer: Be Suspicious of a Rally Based on Nothing

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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) is up because Adidas (ADDYY) is down. United Technology (UTX) was up Wednesday morning when Boeing (BA) 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

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