“We have a genuine, honest to goodness, bona fide bull market here,” Cramer said Tuesday. “But I think most people either don’t recognize this market for what it is because they’ve never seen a real bull and are too skeptical to think they could be staring one right in the face.”
So what is going on with this market? Cramer outlined a few bullish characteristics this market exhibits.
To start, bull markets are built on skepticism and disbelief, Cramer said. There is little to no participation in today’s market, even fewer who actually admit they like the market.
Next, stocks are acting rationally when they report. If a company reports positive earnings results, it’s stock goes higher. Last year, stocks went down regardless of whether they should have or not.
Meanwhile, stocks that disappoint no longer go down and stay down. Disappointing stocks do go down, but they have been able to bounce back.
Another bullish sign is how stock have been able to bust through levels of resistance. If a certain stock hadn’t been able to get past the $30 level, it probably has been able to.
Finally, good stocks won’t quit. Last year, stocks were like a game of Chutes and Ladders. They might climb up and up, only to slide right back down to where they started. That doesn’t seem to be the case now, he said.
In his more than 30 years of experience, Cramer has seen all kinds of bull markets. He thinks today’s bull market looks similar to those of the 1980s and 1990s, which took us out of the Dow 1,000 and Dow 3,500 respectively. The Dow has spiked higher in the past decade only to turn out to be an unsustainable run, but Cramer thinks today’s bull market has the potential to last.
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