Cramer: Even Friday's Jobs Report Can't Stop Rally
Even though a disappointing jobs report on Friday could erase "a good chunk" of July's gains, Cramer said the market continues to climb.
The gains can be partly explained by an incredibly forgiving attitude in the market, he noted. Shares of Ford Motor , for example, got hammered after it reported disappointing July sales, but then the stock began to rally like July didn't matter. Both BP and Goldman Sachs' stocks took a dive recently, but shares of both companies had "huge moves" after the well was capped and the fines were paid. What's "really amazing" about Goldman, Cramer said, is that its stock has rallied 11 points since having reported a disappointing quarter. Amazon.com also disappointed with its earnings results, where the stock went from $121 to $108 before rebounding after it found support and is now trading at around $127 a share.
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Cramer noted that there doesn't seem to be negative pin action either. Baker Hughes, for example, reported a "horrible" quarter. While its stock got "crushed," the rest of the oil service space rallied.
The Mad Money host also noticed that the Standard & Poor's proprietary oscillator is at plus ten, which is "an amazingly high number that shows buying well in excess of previous rallies." Typically, he said anything north of five is a warning and at this point, the market would have sold off. But the market has passed this level and it continues to climb.
Another sign of "incredible hard-to-kill bull resistance" is how badly the shorts are getting crushed, Cramer said. On reports that said China could announce a terrible economic number last week, the shorts bet against the US to bank on a Chinese-related correction. Instead, China announced a strong number and so the US markets rallied yet again.
It seems the market is playing a "game of chicken" with Friday's Labor Department payroll figures, Cramer mused. In weaker tapes, he noted that the market will sell-off ahead of any ominous signs, but that hasn't happened.
"The overwhelming characteristic of this market can be summed up by five words," Cramer said. "It wants to go higher."
While Cramer welcomes these bullish signs, he cautions investors that "virtually every time I've thought a market was hard to kill, it instantly gets bruised or hurt."
When this post was published, Cramer's charitable trust owned Goldman Sachs.
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