It was a day for the bulls Thursday, “Mad Money” host Jim Cramer said, with the averages rising for a seventh day in a row-the first time in two years. It was also the first time in market history the S&P closed over 1,400, the Nasdaq above 3,000 and the Dow over 13,000.
There are several areas in the market the bears got it wrong, he said.
Take the transports, for example. Cramer looks to this as a key index of whether the industrials are telling the truth. If the transports don’t support the movement of the Dow with its own positive action, you may be witnessing a false move. The transports index has been dragging lately and diverging from the Dow. That’s lead the bears to ask Cramer to tell people to get out of the market. But he wouldn’t bite, and Thursday, the transports “exploded higher.”
The bears were also burned by the banks. Because it was the day that the stress test results were originally supposed to be announced, people placed big bets against Bank of America and bet that Citigroup would pay out a bigger dividend. However, the exact opposite happened when the stress tests came out two days early — BofA didn't need to raise capital and Citigroup flunked.
Similar scenarios played out with oil and gas, Cramer said.
The bottom line — “This market seems to sense the objections of the bears, it takes them all in, it bends to their wishes for a few days, and then, just like that, snap, the bears are caught in the jaws of their own logic,” he said.
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