• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Technology

Cramer: Markets Are Shrugging off Italian Referendum Worries

The surprise factor turned out not to be a surprise.
By JIM CRAMER
Dec 05, 2016 | 09:21 AM EST
Stocks quotes in this article: WDAY, LNKD, DATA, CRM, SPLK, QLIK, DWRE

Does the market know something we don't? Or is the bias so bullish that we don't care?

Last night, there was general panic over the Italian vote, as if somehow it was totally unexpected. You could argue that this vote and the subsequent resignation of the globalist Prime Minister Matteo Renzi could portend a breakaway of Italy and a return of the lira to stimulate growth.

You could argue that all of the ailing banks will have no fresh capital because of that danger. You could argue that the dominos are falling. I saw all of these last night and the market is rejecting them as a factor for the rest of Europe even as the Italian market, at one moment rallying, has turned down.

But the "surprise" factor turned out not to be a surprise. We have given up on the polling after Brexit and Trump, and the idea of a major European or Italian collapse was factored in. Notice, I said the idea.

Now, Europe was down ahead of this vote, so you could say it was factored in. But the notes last night were all pretty worrisome. They were also totally dismissed.

But another way to look at this is that the market isolates and doesn't assume collateral damage any more, at least for the moment.

This phenomenon is happening in individual stocks, too. I am in awe of the market's ability to bounce back after the forecast cut by Workday (WDAY) . In February this would have been catastrophic as it was with LinkedIn (LNKD) and Tableau Software (DATA) when they had shortfalls.

The spillover was brutal for stocks like Salesforce.com (CRM) and Splunk (SPLK) and Qlik (QLIK) and Demandware (DWRE) , although the latter two were subsequently snapped up, as was LinkedIn itself. Only Tableau Software really struggled, as its model was called into question and it's become a more inconsistent and slower growth company than it was last year.

Perhaps the takeaway is that there is more bullishness now than then? It sure didn't pay off to panic then: three huge takeovers were missed.

Perhaps the takeaway is that Brexit and Trump were buying opportunities.

Or just perhaps people simply aren't going to sell everything on any news and then reconsider because they are concerned about missing the next move?

To not acknowledge this switch is to suggest that nothing's changed. That would be completely inconsistent with what is happening now.

Note it; either the bullishness is totally palpable, or the across-the-board bearishness has been discredited as a poor strategy for running money.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity | Rates and Bonds | Markets | Technology | Economy | Politics | How-to | Jim Cramer | Risk Management | Stocks

More from Technology

Facebook Investors Shouldn't Panic Over Reports the FTC Wants an Injunction

Eric Jhonsa
Dec 13, 2019 2:44 PM EST

Recent reports have heightened fears that the FTC will push for Facebook to be broken up. But any such effort is by no means guaranteed to succeed...and might not be a disaster for shareholders even if it did.

My Trade Idea for Oracle

Stephen Guilfoyle
Dec 13, 2019 12:30 PM EST

ORCL is competing for the business to business cloud, obviously a tough space.

Broadcom's Guidance Is Stronger in Some Spots Than Others

Eric Jhonsa
Dec 12, 2019 9:04 PM EST

Broadcom expects fiscal 2020 to be a good year for networking and RF chip sales. But it forecasts a major drop in its "mixed-signal custom" wireless chip sales to Apple.

Trade Deal Apparently Arrives -- Now What?

James "Rev Shark" DePorre
Dec 12, 2019 4:41 PM EST

Market players are relieved to finally have this uncertainty at least partially resolved, but will it bring new highs or trigger profit-taking by traders who have been anticipating the news.

Nvidia Talks Shop at Investment Conferences: 5 Important Takeaways

Eric Jhonsa
Dec 12, 2019 4:29 PM EST

The GPU giant remains upbeat about cloud demand, and downplays the impact of Intel CPU shortages on its gaming GPU sales.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 10:10 AM EST BOB LANG

    Banking a Big Winner in SRPT, Rolling Up

    Nov. 20 here on the CC, I mentioned buying some Ma...
  • 10:36 AM EST GARY BERMAN

    Fibocall: How High Can Crude Go?

    On crude: I am looking for higher, but please b...
  • 08:20 AM EST BOB LANG

    Webinar Time - Talkin' Calendars, Butterflys

    join me later today after the market close as we t...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login