Was oil woodhead sharply lower and stocks would fall along with it, yet that is not what has happened. Have p and the dow each. 5 not a runaway rally but if you look at the s p 500, you will see what im talking about here. A gradual increase throughout the morning and what is interesting is as we have seen ad itslly, the dow highest and nine months, we have seen people dumping their short nuts on the s p 500. But you have here is the measure of short positions on the s p 500. Weve seen a decrease in those positions at the fastest pace in four years, sort of a far and of this chart. Beenosition has substantial as people have been squeezed out as stocks go higher. Mentioned stocks year with oil wiping out some of its losses. Julie you can see it was lower but climbing back substantially, down almost 2 . Flirt with the positive before closing down by a little bit and we continue to watch the correlation between oil and stocks. Looks at the two and we have the 120 day directional correlati
And thats what happened today with the dow roaring 217 points, s p 1. 4 and nasdaq flying up 1. 82 . Think about the sequence of events just over the last couple weeks. First the fed says things arent Strong Enough for them to raise rates, economys not that good. Secondly china putting up very weak numbers. Third, Major Industrial Companies Like caterpillar tell us business has slowed down maybe dramatically. Nonresidential surveys show a pause in building. Fifth, we hear major mineral mining like alcoa, six Delta Airlines just talked about developing wide body airplane. Seventh, that powerful engine of job creation the oil and gas industry has gone almost full stop because of an epic glut in all things energy. Finally, eighth, the c only yesterday we heard the Worlds Largest retailer, walmart, sing the blues. About the need to spend a fortune in order to stop the death by a thousand cuts of weaker same store sales. You put all these together and you get something weve seen happen time
Mining like alcoa, six Delta Airlines just talked about developing wide body airplane. Seventh, that powerful engine of job creation the oil and gas industry has gone almost full stop because of an epic glut in all things energy. A finally, eighth, the only yesterday we heard the Worlds Largest retailer, walmart, sing the blues. W about the need to spend a fortune in order to stop the weaker same store sales. You put all these together and you get something weve seen happen time and time again in opere buyers cut loose from the industrials, and they go for the gusto. They return to their always companys that have hypergrowth no matter what the state of the worlds economies. Er and where is there real growth and corporate revenues in profits regardless of the economy . The first place you look is biotech. Gr this is a sector switched from bull to bear overnight. He its been a oneway ticket to sheer hell for weeks now augmented by fears that the ks democratic president ial candidates in
Us business has slowed down ha u n maybe dramatically. Nonresidential surveys show a at pause in building. Fifth, we hear major mineral mining like alcoa, six Delta Airlines just talked about developing wide body airplane. Seventh, that powerful engine of job creation the oil and gas industry has gone almost full stop because of an epic glut in all things energy. A finally, eighth, the only yesterday we heard the Worlds Largest retailer, walmart, sing the blues. W about the need to spend a fortune in order to stop the death by a thousand cuts of weaker same store sales. You put all these together and you get something weve seen happen time and time again in opere periods of economic softness. Buyers cut loose from the industrials, and they go for the gusto. They return to their always first love, the stocks of companys that have hypergrowth no matter what the state of the worlds economies. Er and where is there real growth and corporate revenues in profits regardless of the economy . T
Im jim cramer. Welcome to my world. You need to get in the game firms are going to go out of business, and he nuts. Theyre nuts. They know nothing. I always like to say theres a bull market somewhere. Mad money, you cant afford to miss it. Hey, im cramer. Welcome to mad money. Welcome to cramerica. Other people want to make friends. Im just trying to save you money. My job isnt just to entertain but to teach you. Call me at 1800743cnbc. At the beginning of every new year, i like to nail down some themes, some themes that could be safe safe places to tread on down days like today where the dow sank 51 points, s p gave up. 31 , and nasdaq declin declined. 09 . These are themes that can withstand the test of circumstances around us, whether it be the upcoming debt ceiling fight or potential chaos overseas. Just or just the overall sense that our economy isnt creating the jobs we thought it would. [ heartbeat ] this show i thought it would be important to have big themes to fall back on. R