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? And while some groups are undervalued, there are a few stocks in Cramer's March Madness that could go even higher based on this strange phenomenon.
"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.
How about Edwards Lifesciences, which shot up $13 on Monday. This stock was up due to its new heart valve replacement system. Now the stock goes up? Now? Cramer has been raving about it for years! Still, even though the market just clued in to this late, he thinks it is not done, yet.
He has also seen this trend of opportunity outside of biotechs, in stocks like Harman International and Tesla. Elon Musk tweeted out over the weekend that he will have a major software announcement on Thursday that will reduce range anxiety. Cramer anticipates that this stock will run up in anticipation of the announcement, and then embrace everything he has to say.