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Cramer: 'I've Never Seen This in 34 Years of Investing'

Monday, 13 May 2013 | 6:02 PM ET
Embracing the Market
Monday, 13 May 2013 | 6:00 PM ET
Mad Money host Jim Cramer dissects today's market action, and discusses ways to make money.

(Having trouble with the video? Click here!)

Dig down into the market and Cramer said there's something remarkable underway. "In fact, there are three things happening," he said, "that I have almost never seen happen in my 34 years of investing."

Cramer believes events are not only noteworthy but they probably should inform the way in which you invest, going forward.

Here are the forces currently at work underneath this market:

1. No Sell Off On Good News

Typically, when a stock runs up into its earnings report, investors will often take profits when the company issues its release.

"How many times have you heard people on CNBC talk about a stock that sold off on good news. That is, profit-takers emerged and rang the register," said Cramer.

That kind of investing behavior tends to be the norm, with pros believing that expectations are already so high in the market, it would be nearly impossible to impress Wall Street further.

However, Cramer said that's not happening right now. In fact it's just the opposite.

"Take Whole Foods," Cramer said. "Here's a company that had languished in the low to mid 80s. Then, ten days before the company reported, Whole Foods broke out, ramping from $88 to $92. That's a huge move ahead of a quarter. Sure enough, Whole Foods reported a good quarter but did the profit takers come in? Nope. The stocks soared ten points."

"That's a totally shocking development when compared to what's been happening for so many years now," Cramer added.

Adam Jeffery | CNBC

2. No Trade Down To Fill Upside Gap

Although Cramer doesn't live and die by the charts he does keep a close eye on patterns. And recently, he's spotted something almost confounding.

"Typically, when a stock gaps up on good news, it often then trades down to fill in the gap before taking off again. In the past when I have seen a gap, I just presume that the stock's going to drop back a bit and there's no reason to chase," Cramer explained.

But that hasn't happened in this rally.

As examples Cramer cited Williams Sonoma and Restoration Hardware. "They both reported upside surprises, gapped higher and never pulled back."

That's flabbergasting.

3. Stocks Roar Higher After Miss

Cramer said this third phenomenon was the most difficult of all to fathom and cited 3M as an example.

"Not only did the company miss its quarter, but it gave an incredibly gloomy outlook. The stock immediately plummeted from 107 to 103. Usually that's the beginning of a huge rollover. Not in this market. Despite giving the market very little hope of an imminent rebound, 3M's now three points above where it was when it lowered the boom. That's unheard of. I can't believe that this stock could roar higher after that miss," Cramer said.

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Read More from Mad Money with Jim Cramer
IPO's - Cramer's Strategy for Success
Early Sign of Froth in the Market?
Cramer's Trend Watch: Store Brands
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When taken in tandem, Cramer thinks these rare market phenomenon are transmitting a very important lesson – that the bull is stronger and more powerful than most investors dare to consider.

"I believe that we are in a surrealist moment where even hardcore optimists are blown away by this bullish stampede," Cramer said. "Right now we have a bull that's crushing even the most skilled of matadors. We old timers have always been taught not to chase. We have learned that you will always get your chance. That may not be the case this time around."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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