Cramer started Wednesday’s show with an explanation of the four signs he sees that hint at a bullish market. (Yes, even despite a 109-point decline in the Dow.)
One is the bounce seen in the financials regardless of the SEC’s lax approach to enforcing key short-selling rules. Cramer’s expecting still more pressure on this group from the bears, but said it looks like the worst of the number cuts and downgrades in the financials could be over. Even after a small pop in oil prices, which has been a negative, couldn’t hold the banks back.
Second is the fact that retail wants to go higher even though there are plenty of reasons why it shouldn’t. Look at Macy’s , which finished the day up after reporting a less-than-stellar quarter. Plus, like the financials, retail held its own despite an increase in oil prices.
Then Toll Brothers took a hit after reporting a 34% decline in third-quarter revenue but rebounded to finish the day up. Cramer called the reversal a “loud and clear statement that things are getting better, not worse.” Toll reported a drop in cancellations, and that means more mortgage money is available to buyers.
And lastly, the Nasdaq “just won’t quit.” Apple is rallying, the market actually believes that Applied Materialshas hit its bottom, and even Cramer had to admit that there’s momentum in tech.
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