Earnings season when theres too much to keep track of and the action seems to stop making sense. The dow gained 46, the s p advanced and the nasdaq climbed up, you have every right to be extremely frustrated stocks that should be going up are going down stocks that should be down are going up human sacrifice, dogs and cats are living together, mass hysteria theres a method to that markets madness you need to understand it. Otherwise, youll have no idea whatsing if on whats going on a close investor is a bad investor so let me walk through some of the craziest examples. Im going to start with caterpillar. Caterpillar, the stock huge shortfall in response of course the stock correctly plunged 6 in Early Morning trading. Well, i thought it was a bit of an overreaction, nothing unusual about a stock going down in disappointing numbers is there its what happens next thats should we take our cue from this hard to explain. Cat down 6 and slowly rebounded. If you saw it near the low, this is a
Lower. Okay i know i say this stuff every night all right . Maybe you think i sound like a broken record but the truth is im always repeating this mantra because of days like today where events can overwhelm you and gameplan cant survive even a minute of battle with the enemy, short sellers, s p furlt sellers, etf guys or fellow individual stock shareholders who decided to capitulate. Today a session with the dow down eked out another record five points at close s p another record nasdaq lost after being down this is object lesson day. Use todays incredible turnaround as way to show you how to set up your own battle plan at home for this unusual volt tillity admittedly im a bit of an extreme coach, exgame coach but i know i can teach you i can teach you. Let me give you setup. 2 00 a. M. I get alert on cell phone from unilever. Looked like bad miss to me it was release, nothing good. Gone to bed two hours before that slept in until 3 30. When i saw how hong kong had stopped because of
And on days like today, where the dow dipped 7 points, s p declined 1. 4 . Its more like a tornado that you just hope misses, you thats right, washingtons back to its old tricks. So its crime, right now, right here, on cramers mad money, had me rethink the whole idea of the trump trade. Dont get me wrong. Business is in good shape, both here and abroad. Im not saying the economy is in trouble. Its just that the trump trades of today are very different from the trump trades of four or five months ago, these days more likely to hurt a bull than help. Even though so Many Companies are doing well. For example, what was this mornings donald trump trade . Easy, its the one that came off in tweet from the real donald trump. North korea is looking for real trouble, if china is looking to help, great, we will solve the problem without them. Usa end quote. The trump trade, buy gold, by randgold. Thats probably not the trump trade you were expecting, though, huh . If this works and china actually
Even when it looks like a company has already made a turn around, you need to stay close to them in order to know whether managementceed or fail. I mention this because when were dealing with a gigantic company, a turn around or a lack thereof can affect the entire stock market. Thats buy the dow jones fell 143 points. The nasdaq actually advanc advanced. 23 . What caused the dow to get clocked . This was all about ibms busted turn around story. The failu yes, 20 straight quarters of declining sales. Because of the way the dow is weighted, the downward tug of ibm stock, shaved more than 57 points off the dow, and i have been procuring some successful turn arounds, wall martimartwal mcdonalds and cocacola. Ibm is in the midst of an incredibly difficult turp around. While at the same time expanding into faster growing new tech areas that attract a different and morrow bust group of investors. Ibm wants to become known as the company that uses watsons platform. Watson wants to be viewed a