Mad Money

Cramer: Rally Could Last Until End of Year

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The Dow's Big Day

Don’t try to outthink the market, Cramer said Thursday. Good things can happen, and when they do, the permanent pessimists get crushed.

The bears were pummeled in Thursday’s rally. Money managers were short going into the most recent euro zone drama session and needed a collapse of the talks in order to win. Instead, we got news of a deal on the European debt crisis.

Now, those managers are going to be telling two different stories, the “Mad Money” host said. Publicly, they’ll stick to their guns and spin negative tales. But privately, they will be forced to buy because they’re so far behind in the market that their investors will demand their money back unless they change direction.

That’s why he wants homegamers to be suspicious of those who say negative things about the market between here and year-end.

“They may just be trying to knock it down so they can get back in,” he added.

So what should you do?

For the rest of the year, buy all the dips, and don’t sell the rips because there’s not enough stock to go around.

“I think we’ll have a rally to year-end since the negativists will now be desperate to reposition themselves,” he said.

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