All Up From Here?
The Dow was up big for the second trading day in a row, lending credence to Cramer’s theory that things are looking up, on Wall Street, in the economy and even across the globe.
Obama just uttered the word infrastructure and all the sector names Cramer mentioned last week jumped: Vulcan Materials up 11%; Martin Marietta , 15%; and Caterpillar , 11%. Other countries are following our lead, pushing through stimulus plans of their own. China finally rallied. The hedge-fund selling seems to be over. Cold weather has helped the natural gas stocks. Oil’s bounced back from $40 a barrel, forcing the shorts to cover after last week’s 25% decline in that commodity. Gone are the weekends spent trying to save another U.S. financial institution from ruin. Some positive forces are at work here.
Of course, if you weren’t in before the move – it’s too late now. But don’t worry, Cramer said. A recovery won’t head straight up. There will be more opportunities to get in. If you did own some of Cramer’s recommendations, such as those aforementioned infra names, then he recommended taking profits. The same goes for the accidental high-yielders that have gotten a lot of play on Mad Money recently.
The key is to be disciplined, Cramer said, selling into today’s strength and buying the defensive names that the rally seemed to miss.
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