Cramer's 'Mad Money' Recap: The Unsinkable Stock Market
NEW YORK (TheStreet) -- This unsinkable market just won't quit, Jim Cramer announced to his "Mad Money" TV show viewers Tuesday, as he opined on yet another up day in the markets. Cramer said that despite a groundswell of negativity, the markets have yet to have a three-day losing streak in 2013.
With the calendar page turning to the dreaded month of May tomorrow, Cramer said there will undoubtedly be plenty of talk surround the old adage of "sell in May and go away." Yet, history tells us that May isn't inherently bad for stocks, it's at best a coin toss, with the markets rising about 50% of the time in recent years.
So why are the analysts so negative and so wrong about stocks? It wasn't until shares of Apple
Analysts were also late in downgrading Best Buy
Only pessimism seems to be taken seriously in today's market, Cramer concluded, and anyone who is positive is skewered for being so -- even though they're right.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Tim Collins over the chart of Berkshire Hathaway
Collins noted that after a four-month rally, the daily chart of Berkshire has been trading sideways for almost a month, displaying a classic pennant or flag pattern, which is often bullish for stocks. He felt that once the stock breaks above the $108 level, it could quickly rally to the range of $113 to $122 a share.
This thesis was confirmed by the accumulation distribution line, a measure of the money flowing into, or out of, a stock. The line showed that Berkshire has been in accumulation mode in recent weeks. The relative strength indicator, or RSI, is displaying a bearish divergence, which is typical during a consolidation phase.