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Cramer: Apple's bizarre disconnect between analysts and sellers

The inconsistency in the stock market is maddening for Jim Cramer right now, and it is everywhere. Stocks have huge runs, only to see them repealed, and the experts moving the stock all have different opinions.

"It is the kind of thing that inspires zero confidence, and that lack of confidence is what keeps so many investors either on the sidelines or streaming from the exits well before the game ends," the "Mad Money" host said.

One instance of this is what Cramer described as the "bizarre disconnect" between what analysts are saying about Apple sales, and what the sellers of Apple's products are saying.





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Piper Jaffray's Gene Munster released a note on Tuesday that said demand for the iPhone 7 could be diminishing faster than usual, and raised questions about demand in the future.

However, when Cramer interviewed Sprint CEO Marcelo Claure and asked him about Munster's note, Claure dismissed it and said iPhone sales are even stronger than he expected since the launch.

"It's not a question of who do you want to believe. It is more serial commentary," Cramer said.

Apple stock reflected the commentary, too. It was knocked down by Munster's note, and then boosted on Claure's commentary, Cramer said.

Cramer also saw the same inconsistency with Wells Fargo on Tuesday. Wells Fargo CEO John Stumpf was questioned on Capitol Hill for the company's cross-selling tactics that resulted in thousands of unauthorized client accounts being opened.

"It was a weird hearing because anger at Stumpf actually brought together both Democrats and Republicans in condemnation. Stumpf united the aisles, against, well Stumpf," Cramer said.

Yet, the stock wasn't hammered in response. Instead, the stock had the best day in ages and rose almost 2 percent. Cramer explained the dissonance and pinned it to short-sellers. It was time for them to bring in their bets because of the possibility that the Fed could spring a surprise rate hike at Wednesday's meeting.

"Whatever the publicity and fallout might be, Wells Fargo's stock is expected to be one of the top beneficiaries of a rate hike, which, of course, trumps everything else," Cramer said.

The inconsistency has at least been consistent all year. Over and over again, Cramer saw big runs in stocks that were repealed on practically nothing.

"All I can say is what a revolting development."


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