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Cramer: This rally isn't on its last legs

Monday, 26 Aug 2013 | 6:30 PM ET
New highs never lie: Cramer
Mad Money host Jim Cramer doesn't quite believe this market is on its last legs. "It's just on different legs," he says.

Though stocks reversed their earlier gains in the last hour of trading to close near session lows Monday, with the Dow ending below the psychologically-important 15,000 level, Jim Cramer expressed doubt the stock market rally is losing steam, especially given the eclectic mix of stocks hitting all-time highs.

"The new highs never lie," Cramer said. "There's just too much buying power and too few sellers for me to believe that they aren't real tells of the underlying market's strength."

TJX made the list, for example. The off-price retailer buys close-out goods from retailers that failed to sell their merchandise in time for the next season. These retailers can't bring in fall apparel until they dump their spring and summer merchandise. Bloated inventories are certainly a drag, but it winds up being a boon to TJX's business, the "Mad Money" host suggested.

Health care plan provider Cigna hit a new high, Cramer continued. Despite suggestions from President Barack Obama that health care costs are falling, Cramer noted that Cigna has been able to get higher prices for its insurance.

Cabot Oil & Gas also hit a new high, Cramer said, because it has exposure to the natural gas-rich Marcellus shale and an energy-hungry market in New England to sell to.

Cramer listed several other examples of stocks from varied industries that hit new highs. But what's the bottom line?

"You can't hate a market that has so many disparate groups in ascendance. There's just too many stocks doing well from too many different areas of the economy to believe, like many people I talk to, that this rally is on its last legs," Cramer said. "It's just on different legs, maybe unsteady ones for now, but ones that can provide a basis for the next move upward in the averages."




—CNBC.com contributed to this report

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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