What if there is new information? What if a stock is being propelled by actual events or changes?
That's how I feel about a whole bunch of stocks this afternoon and I condone, if not approve, the moves.
Let's start with Tesla (TSLA) . The talk in China is that Electric Vehicles aren't selling well and therefore the subsidies for them can't afford to be stopped, something that government was signaling would occur in 2021.
Today we are hearing that the government is willing to extend the subsidies. This change can help Tesla, which wants to produce 250,000 vehicles immensely and is worth the rally in the stock. I think that Tesla's going to have some very big numbers next year because of China and the numbers, the big jump, could be very real.
How about Lululemon (LULU) ? This stock has been red hot and there was a cohort of people who believed that womens' apparel was weak at Kohl's (KSS) so it might be weak at LULU. But they preannounced stellar numbers this morning which makes the stock cheaper than we thought. I know that the stock isn't cheap but everything is relative and Lulu's estimates are too low.
Or Beyond Meat (BYND) .
McDonald's (MCD) had not signaled how the trial for Beyond Meat in Canada was doing. The thought? Must be tepid. I think McDonald's thought the product was too niche, the opposite of what Burger King was seeing. It seemed like the plant-based burger movement would be stopped in its tracks.
But last week McDonald's decided to expand the trial from a handful of stores to 50 stores. That's fantastic because, believe me, if McDonald's were to adopt Beyond Meat well, let's just say, there really is no price you wouldn't pay for the stock although the big issues would be delivery; no way they could meet demand. No matter: they will if McDonald's says they should. That stock deserves its move.
Baxter's (BAX) been flying and flying and on no news, until the JP Morgan Healthcare conference when it preannounced much better than expected numbers....Ah that explains it.
Of course, not all of these moves are based on news. We have a tons of stocks just moving up on the endless price target boosts, stocks like Salesforce.com (CRM) where there is nothing new. After biding time since a sharply better than expected quarter it is now getting the respect it deserves. When Adobe (ADBE) had its big analyst meeting it reaffirms its long-term growth and that bit of incredibly important information was totally ignored.
Now people are rethinking and the stock is on an unimaginable tear. Again, though, it's not based on anything new.
Nvidia's (NVDA) stock moved up again on another price target based on things I have talked about endlessly: artificial intelligence, ray tracing for video games. I love the stock but, holy cow, this move's electric.
And, finally there is Apple (AAPL) , up again today on a big price target boost and chatter that the 11 is selling well. What I say is NO KIDDING. But there was also a whiff of 5G talk today and that's just the beginning. That's moving NXP Semi (NXPI) , Marvell Tech (MRVL) , Skyworks (SWKS) and Qorvo (QRVO) ...again.
Without more news I fear that we could be in for a rocky earnings season given these relentless advances. We are devoid of big sellers and the shortsellers are being steamrolled like I don't know if I have ever seen before.
Still, news moving stocks pleases me. I just wish there were more news.
(Kohl's, Salesforce.com, Nvidia, Apple and Marvell Technology are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.)