The Money Now Moves

 | Sep 21, 2012 | 7:40 AM EDT
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Sometimes it wont go down because it shouldn't go down. Yesterday I felt outgunned and undermanned with my rap about how you can probably get ready to buy Union Pacific (UNP) off of the Norfolk Southern (NSC) call and you should look for retailers to buy off of Bed, Bath and Beyond's (BBBY) disappointment, and, as I said last night on "Mad Money," I would probably want to initiate a position in BBBY this morning.

Sure enough, you did have to move on retail, although the rails stayed heavy. What I didn't see immediately was, once again, the J.C. Penney (JCP) trade was back on, meaning that the Ross Stores (ROST) names, which were perceived to be hurt by a resurgent JCP, are back in play. Plus, the dollar stores started moving back into the green too.

That makes sense. What's been the undercurrent these last four days? That the price at the pump is coming down. We know that when we see that we buy Ross, Dollar Tree (DLTR), TJX (TJX) because it means that the people who spend a larger percentage of their money on gasoline can now spend it where they shop.

What bothered me is that I had to deal with a firestorm of it's-over people because of the NSC-BBBY action.

So, let me say it again, the hallmark of this positive action, the one we have had for months now, is that the money goes somewhere. We are done with the days where your screen is drenched with red and stays red. We are in the days where the screen is drenched red and you have to go find Dollar Tree and Ross and buy them.

That's because, as I said last night in my last piece here, this market is a solid market with great Fed underpinnings and as long as you don't fall into the trap of buying a secular decliner -- any company having to do with coal or personal computers -- or a serial disappointer, at least of late the case with BBBY, you will do well when the futures take everything down because, alas, not everything deserves to stay down any longer when the futures pull that grim reaper across-the-board action.

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