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Dow Jones Industrial Average, Dow futures, Stock, Stock market, Wall Street, Nasdaq, S&P 500 Cramer on what stock futures say about the market

Mad money starts now: hey i’m kramer. Welcome to mad money. Welcome to create america. Other people make friends i’m just trying to make a little money. My job is not just entertain but to educate you so call me at 1, 800, 743, cmc or tweet me at jim cramer. When you wake up at 4, am you’ll learn a ton about the market. I encourage you to try it if you want to see how stocks are setting up, but unless you’re allergic to sleeping like i am you probably don’t, want to make a routine. Today was a classic example, because it showed how something that’s thinly traded but covered in a patina of authority and authenticity can often determine the media coverage of the morning. One look at the dow futures told you that this would be a bad day a down day. Maybe a terrible day because the dow futures are down 100 points. Of course, we’ll be finished up nicely down. Gaining 126 points has sp advancing 0.35 nasdaq edging up 0.21. I mean it was a bonanza. So how come everybody was down beat this morning? I heard many reasons: well, the delta strain of covert, obviously fear of earning season, a bunch of key downgrades, no lift from virgin galactic. Even every successful flight by sir richard branson. The repeated references to a rapid rise in covert cases seem like the most likely culprit, but all of those seemingly legitimate reasons for a weak market obscured the truth, which is that the futures are absolutely worthless.

As a weathervane, you should just banish them from all thought. Unless you’re looking for a buying opportunity, when they foolishly knock things down, the reality is that companies are in charge of their own destiny, so the downward tug of the futures can give you some terrific prices. Remember, while socks just are pieces of paper they’re, backed by real businesses that are often run by real smart people so tonight i want to show you how juicy these bargains can be. As long as you have an opportunistic attitude – and you know like me how to read the tape it starts with having a world view, you can’t come at the market with a view from nowhere, i mean you need your own convictions right now. My world view is positive: we’ve had an ugly bout of inflation, but i agree with fed chief jay pal and believing that it’s transitory, a number of commodities have already come down big from their highs. I know we have a cpi number if it comes in hot tomorrow, you’ll say: kramer’s crazy, but i’ve got to tell you take lumber it’s, so it went down another five percent today now it’s a race 2021’s remarkable gains. Meanwhile, i think earnings should be very good for the most part, employment’s strong and the scatter quarterly reports. We’Ve got in the last couple weeks have all been pretty positive. You may not share my worldview, but if you’re also inclined to be optimistic, let me tell you how to use the futures to go bargain hunting.

These are real life. Examples that you can do if you pay close attention all right. So let’s start with an anecdote. This weekend, my wife and i slapped down 30 bucks well 30 invisible bucks to watch an unbelievably fabulous movie, black widow with scarlett johansson, okay candidly, i was dubious going in. I like marvel technologies more than marvel comics, but lisa lisa. She talked me into it now. Some of it was easy. She said we can sit down on the couch and have gigantic coke zeros hershey’s kisses and raw men delivered right before the movie began. We watched it on our big screen tv from the couch in our living room. We stuffed ourselves with nurses kisses, we poured down the cokes, they weren’t five bucks, a piece and we loved it if it weren’t for a centipede that somehow appeared on the wall behind us, lisa got rid of it, because i was way too scared. It would have been a perfect evening. Look after that experience i figured disney was screaming by right, even before i heard that black widow made a total of 80 million, including 60 million just from disney plus it proves they can make big money at the box office where the story is one of reopening Which is what i wanted so much and streaming at the same time, so when disney dipped slightly to 177 this morning because of the moronic futures, that was your chance. If you pounce near the opening, you finish the day up four percent: now it doesn’t hurt that they just raised the price of espn from 599 to 609.

I bet you, nobody even notices. I know i won’t, i think it’s incredible value, but there it is right. There, because of the futures boom, what a trade that is. Okay, now next up american express, i almost got a preview of that earlier. Ever since we sat down with steve squeary, the ceo at my bar in brooklyn i’ve been convinced that this stock has been a must stone. But look at this look how this works. Yeah! You don’t leave your portfolio with that this morning, america’s best quarter, not one, but two price target boosts after a big upgrade. Last week from goldman sachs, i was jonesing. Yet thanks to the futures, the stock opened down two bucks. You had to buy it with both hands. Look at the money you could have made here. This is because of the stupid futures, and then it snaps right back bingo what a fantastic entry point, or trade and that’s how you make money uh, almost immediately with the amex finishing up the day, nearly two bucks, but you got it down here at the discount Right then, there are the banks: oh, these two are really choosing you have two of them in the dow yeah jp morgan got goldman sachs. Now these are day trades because they’re about to report earnings and i’m, not confident enough in the numbers to justify holding them, but man goldman was down four early. Okay, look at this look at this uh rally to up 12 ring the register right that’s.

What i should just bring the register jp morgan look at this gets banged again. All of us because of these thinly traded futures jp morgan get gets banged down two bucks at the open. If you bought it there, you were up five almost instantly. The pattern’s been with us for months now and each time it fools people that’s why i’m going through this so granularly, i am urging you not to be misled by the downward pull of the futures. Close your eyes, ulysses put yourself on the mask, just wrap yourself. If you’re the courage of your bullish convictions, these dips are a gift. Why does this method work? Because i don’t take my cue from the action like i said: you need your own worldview, one that doesn’t change based on the market’s data day gyrations. I know that’s hard to do but that’s what you must do. I always tell actionallersplus.com club members that it’s vital to have what i call a six month world view six months is about. As far as we can see it’s kind of like the 12 miles. You can see from the beach before the horizon. Assuming your worldview is positive, like mine, then you can treat these pullbacks like a buying opportunity, plain and simple. So let’s go back to my world view because it’s the most essential piece of the puzzle, what makes them bullish right, isn’t that what’s about what makes it bullish, even though we’re getting a lot of anti business rhetoric from the white house, that’s, mostly blunted by gridlock.

In congress, when biden bashed the railroads last week, accusing them of price gouging, you had to hold your nose and buy norfolk southern, which now is up a quick. Eight points. Biden wants to crack down on the perceived excesses of big business, but he doesn’t have the votes in the senate to do it. So i expect this pattern to repeat itself over and over and you must be ready for it. Norfolk. Southern keep thinking norfolk southern second. I think jay pal, i think, he’s dead right about the temporary nature of inflation. Many commodities already peaked two months ago. That means the fed can continue to be your buddy third there’s a lot of money coming into this market, but i don’t think there’s. The sign of a top you, despite what i keep hearing, it’s more of a sign that bonds are making next to nothing. Their yields have collapsed. Thanks to the slight slowdown, the economy, more importantly, tons of buying from overseas. That means stocks once again are the only game not in town. How about the world finally i’m expecting pretty good earnings season, maybe not the best, because most companies will have their profits sting by inflation and unfortunately, the banks start and they’ve got issues about their trading division. It’S not that good, but i believe we’re going to get a number bumps and upgrades that will keep the rally going. You’Ll come in here and you’ll hear a raising price target hold the buy that’s what it’s going to be bottom line.

If you share my bullish world view, then you can wake up early. Take a look! Wait for the futures to knock down your favorite stuff, get up at 4am! Please i’ll! Be there tomorrow, i’ll wake you at 3! 30.. Remember never buy all at once, but think of this morning and be opportunistic okay, both in trading and investing, and how about that disney going to an opening model. Beautiful don’t miss a second of mad money. Follow at jim kramer on twitter have a question tweet cramer. Hashtag mad tweets, send jim an email to madmoney at cnbc.com or give us a call at 1, 800 743 cnbc miss something head to madmoney.cnbc shepard smith.

What do you think?

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Stock, Wall Street, S&P 500, Dow Jones Industrial Average, Stock market US Stock Market Indices Analysis║S&P500, NASDAQ, DOW JONES, RUSSELL 2000║July 12, 2021

Dow Jones Industrial Average, Dow futures, Stock, Stock market, Wall Street, Nasdaq, S&P 500 Cramer: Investors buy tech stocks to hedge inflation, Fed rate hike