Cramer: Keep an eye on the 'in' crowd
Jim Cramer | email@example.com
This kind of action, which I regard as a "someone knows something" rally, seems downright mystifying unless you are in with the "in" crowd.
Oh, I heard a lot of reasons why we rallied yesterday. This weekend we got the word that Apple was going to launch the iPhone 5 next week. Then we had positive action in housing and related stocks right from the get-go, with the relentless Weyerhaeuser and Sherwin-Williams leading the way.
We also had terrific auto sales, 14.5 million in total, which is outrageously positive. Autos are a gigantic part of the U.S. economy and a strong signal of consumer spending.
But in the end, what's at stake here is lots of chatter from behind the scenes that Europe will do the right thing later this week when the European Central Bank meets. I glean that from watching my favorite indicators, the CurrencyShares Euro Trust, which is steady; copper, which hangs in; gold, which keeps going higher (a measure of Germany acceding to reflation); and, best of all, Banco Santander, which has been hanging in like a champ.
The latter is the pure play on Spain. While I am not recommending the stock, you have to admit that it has foretold every move so far, and the action remains extremely positive.
Stay the course.
Disclosures: Cramer's charitable trust is long AAPL and WY.