Skip to main content

tv   Mad Money  NBC  January 1, 2016 3:48am-4:00am PST

3:48 am
after a series sell off. now with no money flowing into the market or even with outflows you can still have powerful moves in the stocks and sectors that are trying to alert through leadership and the turmoil. but the fuel to make those moves happen can't just coue out of thin air. it's money and it has to come from somewhere. so if people are still looking to invest the money will be pulled out of the least exciting and least interesting groups of stocks as investors swap out of them and the one with power and the ones with more lift. people will happily sell them in order to raise cash. this churning move is called a rotation. they sent quite a few rotations since the market bottomed in 2009. without new money flowing in the advance often comes zero sum and ultimately can and probably will run out of fuel. as soon as the selling comes to an end the leaders also run out of team. there's not enough left on the sidelines to drive them higher if it comes in and when investors on the sidelines are
3:49 am
worse can happen. you can get a rally in what i call the wrong stocks. that's right. the stocks that signal slow downs or even recessions. namely the food and drug names used as fuel during the previous advance. these stocks can become the markets new leaders. and right back in. it must be ahead. no matter because these nondurables are get sog cheap. you never want to see any of the consumer staples where they're the only ones going higher. it means people think the economy is going to get worse. it's a long time to come. one of the most horrible things you can see is a powerful rally in the wrong stocks. think about coca-cola and
3:50 am
if that's all that's going higher that's trouble. the bottom line. there's nothing more disconcerting than watching a beverage or drug stock plowing higher without understanding the damage it's leaving in it's wake with the rest of the market. until and unless there's vast sums of money coming in from the sidelines you need to be more cautious and left effective unless you see them do the jobs as generals and leaders. watch the sector leadership to help give you a read on macro sentiment and suspect more of a sustained rally. in the meantime look for opportunities to buy high quality names where the stocks and not companies are broken and be ware of buy backs that aren't pop up prices only to see them go right down from unstoppable high frequency bombers. remember the coast isn't clear unless the vast preponderance is higher. after the huge run in the
3:51 am
it's something worth waiting
3:52 am
>> my fingers are hurt from battling all the trolls. if only there was an easier way to answer all the nice tweets. let's give my poor hands a break. give you the answers you deserve. let's start here with at even after i get it who lets us know i let my nose run when listening to at jim cramer because when i sniffle i miss something. may i suggest that you get some mad money kleenex. that way you'll be in sync with what i'm saying next, are there any benefits to purchasing silver over gold, #mad money. gold is getting harder to find and i believe the god is a good insurance policy that has not paid off in a long time but sometimes it's good when
3:53 am
here's one, you have jump started my addiction for investing early on in life. your invaluable knowledge and energy is inspiring. thank you. i want you to tweet that every single day for the rest of your life because it makes up for a lot of the trolls that i have to worry about. now here's an idea. you should have a short video made on jim cramer reads angry tweets against you. that would be interesting and funny to watch. we're going to do that. we're going to do it regularly. there's a guy that does it on tv and it's very funny. what do to? what to do? enough stocks in the portfolio
3:54 am
i know it's painful but you have self-charging tables from integrated eti. that's what i really need. here's at dnj. my financial advisor warned me about watching the market every day. it's more frustrating than ever. i like to check in on the market if i were on vacation. don't be obsessive about it. because that is not what you're trying to do. you're trying to buy good companies with stocks that are good at prices you like and just to watch it all the time doesn't
3:55 am
do homework. next is asking me for information on how to do homework better. i just use google. there's many more techniques. i have written many books about how to do homework. the best one is still real money but my most recent one which is get rich carefully has a whole segment, actually it's the longest chapter about how to analyze stocks.
3:56 am
and of course stick with cramer. >> i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money." i'm jim cramer and i'll see you next time. it's friday january 1st. coming up on "early today." welcome to 2016. millioning ringing in the new.
3:57 am
an isis inspired attack stopped
3:58 am
3:59 am

51 Views

info Stream Only

Uploaded by TV Archive on