What just amazed, awed & astounded Cramer?
By: Lee Brodie | Producer
(Click for video linked to a searchable transcript of this Mad Money segment)
"This is an amazing development," said Cramer. It hasn't happened for over 10 years.
Although the Dow Jones Industrial Average and S&P 500 both closed modestly lower, ten percent of the S&P 500 stocks hit a new 52 week highs and 32 of those traded at all-time highs.
"That's astounding," Cramer said.
"I stand in awe of what's happening here because it sure is unlike any market we've had for the last 14 years. That's the last time I remember the breadth of gains, the incredible unison with which so many sectors are trading at once!"
That is, gains in the market are occurring across a wide range of sectors that typically don't rally in tandem.
Cramer cited a slew of examples:
First, he said oil and gas producers like Pioneer Natural Resources, EOG, and Noble all rallied at the same time as the plane builders. "That would otherwise seem counter-intuitive to me. Plane orders typically come from airlines which are usually losing money when oil's this high."
"This is an amazing development," said Cramer. It hasn't happened for over 10 years.
Although the Dow Jones Industrial Average and S&P 500 both closed modestly lower, ten percent of the S&P 500 stocks hit a new 52 week highs and 32 of those traded at all-time highs.
"That's astounding," Cramer said.
"I stand in awe of what's happening here because it sure is unlike any market we've had for the last 14 years. That's the last time I remember the breadth of gains, the incredible unison with which so many sectors are trading at once!"
That is, gains in the market are occurring across a wide range of sectors that typically don't rally in tandem.
Cramer cited a slew of examples:
First, he said oil and gas producers like Pioneer Natural Resources, EOG, and Noble all rallied at the same time as the plane builders. "That would otherwise seem counter-intuitive to me. Plane orders typically come from airlines which are usually losing money when oil's this high."
Adam Jeffery | CNBC
And he added Starbucks, Chipotle and Whole Foods rallied at the same time as McKesson,Cardinal Health and Humana.
That too is unusual. "Typically when pros feel bullish enough on the
economy to bet on an $8 burrito or a $5 coffee they tend not to want to
hide in stocks that do well when the economy's slowing."
"It gets better," said Cramer. "Cummins, Emerson and Walgreen are all on the 52 week high list. That's a truck maker, and an engineering service company roaring at the same time as a drug store chain. That can't really be happening can it?"
Also all these stocks rallied in the face of concerning news from the Middle East.
"At 4:05 a.m. Israel reported that Damascus fired two missiles at the Golan Heights. Another market would have taken a look at that story and sold down. This market didn't even seem to notice it."
All told, Cramer calls these and similar developments 'amazing.' And if you have money in the market Cramer says developments demand serious attention.
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"This is what I used to see in the 1980s when the great bull market began. It's also somewhat like the 1990s when the Dow took that amazing run from 2600 to 11,800."
In other words, these kinds of developments can signal the start of a great bull run. However, Cramer added they also happen with the market gets irrationally exuberant.
That is, it could be a sign of froth in the market. But any way you slice it, Cramer says we're in an extraordinary moment.
"Sectors that have been antithetical to each other for years are trading in unison. When that happens, I think it's prudent to take profits and wait for developments to play out. Still I have to say, I'm impressed."
"It gets better," said Cramer. "Cummins, Emerson and Walgreen are all on the 52 week high list. That's a truck maker, and an engineering service company roaring at the same time as a drug store chain. That can't really be happening can it?"
Also all these stocks rallied in the face of concerning news from the Middle East.
"At 4:05 a.m. Israel reported that Damascus fired two missiles at the Golan Heights. Another market would have taken a look at that story and sold down. This market didn't even seem to notice it."
All told, Cramer calls these and similar developments 'amazing.' And if you have money in the market Cramer says developments demand serious attention.
---------------------------------------------------------
Read More from Mad Money with Jim Cramer
Forget iPod, Apple needs UPOD: Cramer
Should financials be climbing or sliding?
Cramer spec stocks surges 200% in 6 months
--------------------------------------------------------
"This is what I used to see in the 1980s when the great bull market began. It's also somewhat like the 1990s when the Dow took that amazing run from 2600 to 11,800."
In other words, these kinds of developments can signal the start of a great bull run. However, Cramer added they also happen with the market gets irrationally exuberant.
That is, it could be a sign of froth in the market. But any way you slice it, Cramer says we're in an extraordinary moment.
"Sectors that have been antithetical to each other for years are trading in unison. When that happens, I think it's prudent to take profits and wait for developments to play out. Still I have to say, I'm impressed."
Call Cramer: 1-800-743-CNBC
Questions for Cramer? madmoney@cnbc.com
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
end quote from:
Questions for Cramer? madmoney@cnbc.com
Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com
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What just amazed, awed & astounded Cramer?
"This is an amazing development," said Cramer. It hasn't happened for over 10 years. Get details now.
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Here is my thoughts on the subject: People who got spooked around 2007 and 2008 got out of the market and stayed out of the market for the most part. Many of these people had foreclosed houses, lost their jobs etc. So, the people left in the market are a much more savvy group that are more likely long term investors who don't need this money to survive every day. So, with bigger investors and most of the lower middle class and middle class people out of the market this kind of dynamic makes more sense. People who have survived the last 5 years of crazy markets in the U.S. and around the world are not the types of investors that are easily spooked. They are invested for the most part for staying where they are for 5, 10, 20, or even 50 years and likely will only collect and use dividends and either spend or reinvest them. In other words they see the market differently than the average investor in the market in 2006.
But, here is what I find the most sad about all this. This then means that all the people who got spooked in 2007 and 2008 and got out of the market didn't experience the financial recovery because 2/3 of the financial recovery this time has been in the stock market. So, if you weren't there you basically didn't see the recovery in your investments unless it was your home becoming more valuable this year.
Here is my thoughts on the subject: People who got spooked around 2007 and 2008 got out of the market and stayed out of the market for the most part. Many of these people had foreclosed houses, lost their jobs etc. So, the people left in the market are a much more savvy group that are more likely long term investors who don't need this money to survive every day. So, with bigger investors and most of the lower middle class and middle class people out of the market this kind of dynamic makes more sense. People who have survived the last 5 years of crazy markets in the U.S. and around the world are not the types of investors that are easily spooked. They are invested for the most part for staying where they are for 5, 10, 20, or even 50 years and likely will only collect and use dividends and either spend or reinvest them. In other words they see the market differently than the average investor in the market in 2006.
But, here is what I find the most sad about all this. This then means that all the people who got spooked in 2007 and 2008 and got out of the market didn't experience the financial recovery because 2/3 of the financial recovery this time has been in the stock market. So, if you weren't there you basically didn't see the recovery in your investments unless it was your home becoming more valuable this year.
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