Consumer confidence reports get a lot of press, Cramer said during Tuesday’s Stop Trading!. Maybe too much.
The “Mad Money” host’s comments came after the Conference Board released its latest consumer-confidence number, a 48.5 in September, down from a revised 53.2 in August, Reuters reported. Cramer’s problem with the report, though, was that it seems to fly in the face of the bullish action in retail stocks.
“All these sentiment indices have failed to generate accurate reactions in the stock market,” Cramer said, “and people short … retail stocks off these confidence indices. That’s a known hedge-fund trade, and it has failed repeatedly.”