Markets Stay the Course: Cramer’s ‘Mad Money’ Recap (Thursday 1/7/21)

The stock market isn’t a referendum on the state of our nation, Jim Cramer reminded his Mad Money viewers Thursday. Thursday’s market rally had nothing to do with Wednesday’s insurrection in Washington, he said. Instead, it had everything to do with there simply being more buyers than sellers. Cramer identified […]

The stock market isn’t a referendum on the state of our nation, Jim Cramer reminded his Mad Money viewers Thursday. Thursday’s market rally had nothing to do with Wednesday’s insurrection in Washington, he said. Instead, it had everything to do with there simply being more buyers than sellers.

Cramer identified 10 reasons why the buyers were able to overwhelm the sellers Thursday, taking the averages higher. First, he said stocks are still the only game in town. Bonds simply cannot compete with stocks. Second, machine trading runs on autopilot and when they see opportunities, they buy, regardless of the state of the world. Along those lines, Cramer added that many companies in the S&P 500 have big buyback programs, which are buying back shares every day no matter what.

Next, Cramer said the Tesla  (TSLA) – Get Report effect is still taking the S&P higher, as index funds continue to accumulate shares. He also added that stimulus checks are coming and during the last round, many individuals bought stocks.

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