More turn Bullish

DJIA 8740 SPX 944.74
Cramer: This Is a Bull Market

Apparently, no positive data point, no sector turn, no change in circumstance of any kind is enough to change naysayers’ minds. The move we have enjoyed since early March is nothing more than a temporary pop in an otherwise terrible market.

Cramer disagrees, however. He has been bullish since Dow 6,500. He called the bottom at that level, he was right, and anyone who took his advice has made money. He also urged investors to at least partially cash out when the Dow was near 11,000, and he did so again at 10,000. Those who listened spared themselves losses up to 40%.

Those bears just can’t admit when they are wrong, Cramer said. They won’t admit they missed Goldman Sachs [GS 143.13 -1.20 (-0.83%) ] at $50. They won't admit they missed Morgan Stanley [MS 30.09 0.20 (+0.67%) ] at $12. Nor will they admit that “quality stocks” didn't exist during the depression we saw last fall. Pfizer [PFE 14.98 0.22 (+1.49%) ]? Citigroup [C 3.51 -0.18 (-4.88%) ]? Merck [MRK 27.70 0.17 (+0.62%) ]? These companies either failed to produce returns for their investors or worse, they cost those shareholders money.

Here's the takeaway: Viewers, investors, 401(k) holders, 529-plan contributors – everyone needs to block out the noise. This rally is real. If we suffer a pullback, which is possible, it will be a sell-off in a bull market, not validation of the bears. So don’t worry, Cramer said. We're headed higher.

And This:

Dow Will Reach 14,000 in Two Years: Strategist

Ned Riley, CEO of Riley Asset Management, and David Hefty, principle of Cornerstone Wealth Management, discussed their opposing economic outlook — and shared their sector likes and dislikes. (See their recommendations below.)

“I really believe this rally is the real deal — I felt it two, three months ago,” Riley told CNBC.

Riley said he sees the Dow reaching 14,000 in the next two years.

He also said he is bullish on the housing front and said there will be a “scramble to buy more homes” over the summer.

Hefty said the markets are in a “relief rally” that could last another 12 months.

“All the gains have already taken place,” said Hefty.

“It’s a cyclical bull market but we’re still in a secular bear market. The markets will go up, but when it hits the peak, we’re going to see a potential 50 percent sell-off as we hit the next wave of the secular bear.”

Despite opposing market views, Riley and Hefty each had investment recommendations.


And This:

Pros Say: S&P 1,200 Still Possible This Year

Stocks rebounded off a lower open on Tuesday after a report showed the sharpest jump in pending-home sales in 7 1/2 years.The major indexes kicked off the month with a 2-percent rally amid signs of strength from China’s manufacturing sector and relief that General Motors finally entered bankruptcy protection. Read and listen to what the pros had to say...

Rally Can Carry on Another 10-15%

There is still some recovery left in this rally, said Andy Hartwill of Quasar. “We’re not in the beginning of a new bull market, but the rally can carry on for about another 10-15 percent,” he said.

Counterpoint: 15 to 20% Correction on the Way?

Expect Further Economic Contractions

We’re still looking at a contraction in the economy, but the worst of the decline is behind us, said Scott Brown of Raymond James. He told investors to beware fluctuating numbers in the markets that may signal false starts. He said investors have to be cautious and on their feet.

Art Cashin: Stock Market is 'In a Big, Major Move'
Recession to Bottom Out This Summer

The recession is slowing down, but we need to see some more strength in consumers, and we need to see housing stabilize, said Frederic Dickson of D.A. Davidson & Co. He said the recession will bottom out this summer and that the stock market has another 10 to 15 percent to go off the initial bull market thrust.

Credit Markets 'Leading Us From Doldrums'

“The credit markets have really been leading this market out of the doldrums,” said Maury Fertig of Relative Value Partners, saying that the stock markets have rallied 40 percent from their March 9 lows. He expects a 5 to 10 percent increase in the foreseeable future.

S&P 1,200 ‘Not Entirely Out of Sight’

Byron Wien of Pequot Capital said he is bullish on the markets and expects the S&P to go over 1,100. “The beginning of the year forecast was 1,200 and that’s not entirely out of sight either,” he said. On the consumer front, he expects retailers to have one of the best years this Christmas.


This reminds me alot of the Cramer call of Sept 2006 that the Real Estate market had bottomed. THIS IS NOT A BOTTOM. THE WORST IS YET TO COME. That does not mean that we top tomarrow. They can carry this thing another couple of months but the risk is on the down side not the upside. The market and the economy is in a downtrend and when it ends these experts will not tell you it is bottoming they will tell you to sell.

The beat goes on ....Mikey