Cramer: Rally in Tech, Banks, Retail Needed to Get Markets Moving
President Obama said Wednesday that tackling the U.S. budget deficit would require broad sacrifice and that he would refuse to renew tax breaks for wealthier Americans.
Obama's speech called for reducing the U.S. deficit by $4 trillion within 12 years or less.
That's well and good, but it's going to take more than that to get markets moving according to Mad Money Host Jim Cramer.
"I feel like what's happened is there's a discussion and that's very positive, but in the end we're being driven by earnings," Cramer said on Wednesday's Stop Trading! "Earnings are back on the table and people don't like a lot of the earnings so far, and I think that's controlling what's going on."
Some groups are doing well on the perception that oil has peaked and gasoline prices are coming down, Cramer said, especially the casinos like Wynn, Las Vegas Sands and MGM.
"Make no mistake about it. This is what people are reaching for when they think gasoline has peaked," Cramer said. "But anyone who looks at their screen knows right now that for every one winner with gasoline going down there are five or six losers."
For the markets to get going again, technology, banks retail and other cohorts will need to rally, Cramer said.
But the markets are so negative negative on tech right now that even when a company does well, it takes a long time for people to realize it's a good buy, Cramer said, adding that
Riverbed Technology is a perfect example.
"Last night when Riverbed pre-announced a better-than-expected quarter the stock initially did nothing," Cramer said. "Then it ticked down and then it ticked up only about a dollar and then people realized this morning that it's really good news."
On Wednesday's Mad Money at 6 p.m. ET, Cramer talks with Carrizo Oil and Gas President and CEO Chip Johnson.
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