Cramer: 10 Things Needed for Higher Stock Prices
Nothing is going right in this market right now, Cramer said Monday. And before real change can happen, he thinks 10 points need to be addressed.
First, our leaders have to return from vacation. We have nothing coordinated going on because everyone of import is away, he said.
Second, the banks need to stop going down.
Third, the negative seasonality of tech needs to come to an end, which Cramer believes will be in the third week of September.
“By then the estimates and expectations could be so low that when the companies report, they actually go higher if they just deliver in-line earnings,” he said. “That’s how bottoms get formed.”
Fourth, Cramer thinks we need to see more mergers and acquisitions because it will make us realize that businesspeople think companies are worth more than their stocks are selling for.
Fifth, stock and gold prices need to go lower. Cramer said we need stock prices that don’t buckle on assaults from high frequency traders. And gold needs to show us it can go down, and that it isn’t one way.
“A true reversal in gold could really help us find our footing,” he said, adding that gold’s rally Monday “is pricing in a total disaster in Europe.”
Sixth, Europe needs to tackle the problems with its banks by pledging it will bail out any bank and will not tolerate any more Lehmans. The Europeans also need to insist that the banks raise more equity, Cramer said.
Seventh, Brent crude has to go well below $100 a barrel.
Eighth, once Brent crude breaks, the Chinese have to announce they are seeing better inflation inputs and are done raising rates for a while.
Ninth, the Europeans need to announce it will stick with a version of the euro , but not the one they have now.
“Anything that shows the can-kicking is over,” Cramer said, “even if it means a dramatic and painful recession in Europe would actually be well-received by now because it would eliminate the major overhang for our stocks, which is the pending collapse of their bond markets.”
Tenth, we need to see some stocks need to go to near 52-week highs. Names that had accelerating revenue growth need to reverse their declines and go substantially higher.
Until we see real movement on these ten points, he said, “we are doomed to duke it out in a violent fashion.”
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