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"Confluence of Bullishness"

By Jim Cramer
RealMoney Columnist
3/25/2010 12:36 PM EDT


"We've got a powerful combination of lower unemployment claims, higher retail sales from Best Buy (BBY - commentary - Trade Now) and a Fed chairman who is still saying he will not pull the rug out from this economy.

In the meantime the bond market, while not tamed, is certainly not enough in the way to matter. It is still not competitive to stocks, and the banks have Bernanke on their team while financial reform seems toothless at best and certainly not negative to earnings. After my worries about a more prohibitive and costly health care bill weren't realized, I'll be darned if I am going to start being worried about a pro-industry financial bill.

So, let's see, retail going well, Washington not being punitive -- meaning that Bernanke's greenlighting us -- and the financial reform being well received from the market ... that's a recipe for much higher prices. Stock prices. Not bond prices, which took still one more hit on Bernanke's dovish talk.

It's funny, I wanted so much to draw the conclusion yesterday when General Mills (GIS - commentary - Trade Now) was down that we might be about to witness a rotation out of the soft-goods stocks. Certainly seemed possible given that General Mills beat estimates and then raised its future earnings predictions. Then the stock got hammered. I figured, here it comes, a "sell the softs, buy the hards" moment!

Sure enough, in this endlessly bullish run, what happens? Pepsi (PEP - commentary - Trade Now) and Coke (KO - commentary - Trade Now) have two of their best days in a while and Procter & Gamble (PG - commentary - Trade Now) moves up, too! Those are quintessential selloff names in any rotation. More meaningfully, GIS is down again, and yet it has no pin action whatsoever.

Let's throw this in: Could there be more pin action off of Best Buy? Try Hewlett-Packard (HPQ - commentary - Trade Now), Apple (AAPL - commentary - Trade Now) and even IBM (IBM - commentary - Trade Now). I had thought that BBY would say after the last quarter that things looked better. Now they are saying it loud and clear. Better late than never. Maybe they are just reacting to better employment reports, like the claims we got today.

And the China trade -- Joy Global (JPYG - commentary - Trade Now), Caterpillar (CAT - commentary - Trade Now), BHP Billiton (BHP - commentary - Trade Now), Freeport (FCX - commentary - Trade Now) and Bucyrus (BUCY - commentary - Trade Now) -- lives on.

It's hard to find a more bullish coalescence. The only thing lacking is a run in the oil stocks. Don't blame the oil futures; they are still working. It's all the still-collapsing natural gas prices. No lift there. So no way we can get a run in the group.

If that's the only worry, I say WOW, it will be tough, now that we are in sight of the end of the quarter (the height of markup occurs two days before the end, not the day of or the day before), to see a big give-back for the month and, of course, the quarter.

Random musings: This bust-out of Amazon (AMZN - commentary - Trade Now), while ostensibly about some good online surveys and a nice eBay (EBAY - commentary - Trade Now) boost, I think is a startlingly all-at-once recognition that Apple's iPad will not be a killer. ... Nike's (NKE - commentary - Trade Now) still the most undervalued footwear play. ... Goldman's (GS - commentary - Trade Now) breaking out even as we just discovered via Bloomberg that it was on the wrong side of the euro trade. How much money are they really making away from that!

At the time of publication, Cramer was long Goldman Sachs, Apple, Nike, Pepsi and Procter & Gamble. "

(in www.realmoney.com)