Cramer: This Bull Will Gore You Without a Thought

 | Aug 03, 2017 | 12:14 PM EDT
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Let me tell you what's so hard in this record-breaking market. What's so hard to understand are the maddening misdirection plays that it demonstrates on a daily basis.

Here are two classic examples.

This morning, Costco (COST)  opens up $1, after reporting better-than-expected monthly comparable-sales numbers -- roughly 6% versus 5% expectations.

That's pretty fabulous in a world where retail is doing so poorly.

Then the darned stock just pirouettes and crushes everyone.

Now you could say, "Of course it did. Costco's stock had just traveled from $152 to $161, so it's right to take profits."

But in the old days, Costco wasn't a trade vehicle. It was an own vehicle.

You didn't get bushwhacked like this.

Still, that begs the question, why didn't it open down or flat.

It was a pick-off play.

Next, consider Allergan (AGN) . The company beat and raised, and from all I can tell -- other than one drug-one drug -- everything was better than what I was looking for. And it is a very cheap stock.

Yet it opened almost down five points. I was befuddled on air and we issued an alert for AAP club members telling them the company's numbers were really good.

Then the stock rallied. It rose five -- only to succumb to some profit taking... and slip back down again.

I find this behavior maddening, because it means that there are so many people doing so much that is wrong.

As fabulous as this bull is, it will stab you in the back without a thought.

You have to remain vigilant about the companies and disciplined about your buys, if you are going to make good money. And if you pay up, you should have a darned good reason.

If you sell down, you need a better reason still.

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