Stocks surged after President Donald Trump said he will be meeting with his Chinese counterpart, Xi Jinping, at the upcoming G-20 summit.US Marketsread more
In a tweet, Trump said that he and Xi "had a very good telephone conversation," and that "our respective teams will begin talks prior to our meeting."Politicsread more
Trump starts the campaign season in an unusual spot for a president: overseeing a strong economy but facing low approval ratings.Politicsread more
The move is part of a larger trend that saw the survey's 179 participants move away from risk and toward positions that reflect fear of a coming economic slowdown spurred by a...Marketsread more
Trump went after Draghi for opening the door for more monetary stimulus in Europe, which would weaken the euro relative to the dollar.Marketsread more
Shares of Beyond Meat soared 18% in premarket trading Tuesday, surpassing $200 per share.Food & Beverageread more
UBS believes a rate cut from the Federal Reserve would do little to lift the market.Marketsread more
Investors bracing themselves for lower Federal Reserve rates should think about loading up on health care stocks, history shows.Marketsread more
Now that Disney has full control of Hulu, audiences can expect more original programming to appear on the streaming service.Entertainmentread more
Canaccord Genuity's Tony Dwyer warns that If the Fed fails on Wednesday to signal a rate cut, the June rally could hit the skids.Trading Nationread more
Sometimes, all it takes is a scary stock rotation to fuel a rally, Jim Cramer says.
"When money is flowing into stocks, with the mutual funds buying in endless waves and the hedge funds desperate to own stocks rather than shorting them, then you're in the land of the thousand bull dances and you don't have to worry about where the fuel for a rally is going to come from," the "Mad Money " host said.
When no money is entering the market, that is when powerful moves in stocks and sectors can occur, Cramer said. This happens when investors are reluctant to invest and money is pulled out of the least-exciting groups of stocks, and rotated into sexier names with more lift.
But here is the problem with rotations: Without new money flowing in, gains often become zero-sum and can run out of fuel. The leaders will lose steam with nothing to drive them higher.
That is when the worst possible rally can occur — a rally in the wrong stocks.
In Cramer's experience, "wrong stocks" are those that signal a slowdown or recession. Areas like food and pharmaceuticals become the new market leaders.
"You never really want to see any of the consumer staples roaring higher in a sustained advance because it means people think the economy's going to either get worse or simply stay in awful shape for a long time to come," Cramer said.
Cramer considers seeing stocks like Altria, PepsiCo or General Mills sparking a powerful rally one of the most horrifying things for the stock market. More often than not, it can cause an immense amount of damage, unless there are vast sums of money coming in from the sidelines.
The "Mad Money" host also recommends exercising caution when defensive food and drug names rally. Taking note of sector leadership can give investors a strong read on whether the rally is sustainable or on the brink of collapse.
In the meantime, Cramer recommends looking for opportunities to buy high-quality names where the stocks — not companies — are broken.