Jim Cramer is seeing a new trend that he has never spotted before. Somehow entire groups of stocks are being consistently undervalued in anticipation of good news or earnings. What the heck is going on?
In fact, Cramer thinks that the situation with the dollar growing in strength against the euro has just been delaying the market from going even higher. It was always going to go higher, and the currency wars just stifled it temporarily. Buckle up!
"This failure to analyze positive moves ahead of the action has become endemic, and it's astonishing to me, given that for almost my entire life, the market has accurately discounted good news beforehand, not afterwards, as it has been doing lately," the "Mad Money" host said.
Cramer has seen many confused money managers who are used to selling on news, because they assume that a stock has hit its high when it announces good news. Instead, these stocks defy common sense and continue to go higher afterward.
The most obvious sector where this is occurring is biotech, where the market doesn't seem to anticipate good news, and then the stock only reacts well after the news is announced.