It's becoming a broken record. How the heck can the S&P keep going down when so many things are going right?
Once again, the market fluctuated wildly and ultimately settled down as investors were freaked out at the low price of oil.
Jim Cramer thinks that this just doesn't make sense! To clarify why, he took a deep dive into all the indicators that show the economy is stronger than ever, despite the S&P.
First, PetSmart was acquired for a whopping $8.3 billion, marking the biggest leveraged buyout of the year. BC Partners acquired the company for $83 per share, a 39 percent premium compared to the closing share price just five months ago.
Then there is Apple. If the market is so horrible, then why did Barclays upgrade Cirrus Logic, the sound system company for Apple iPhone? JMP Group also jumped on the Apple train and increased its price target for Skyworks, the chip maker for iPhones. To top it off, a key Apple analyst recently even confirmed that there is an Apple phone shortage for the holidays.
"Three solid pieces about the largest company in the world, but we are supposed to ignore all of that good news and take Apple down because it is part of the S&P, and the S&P goes down when oil goes down? Is that what is supposed to happen?" The "Mad Money" host asked.
He knows who the culprits are causing such a stir in the market. It's the hedge fund trading machines with algorithms that assume it is time to sell, sell, sell when oil is down. Once they finally figure out that the machines are the trouble makers here, then we will finally see a bottom.