Jim Cramer - Why Stocks Go Higher on Bad News

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Why weren't we down hard today? It is hard for stocks to go higher when the news is always bad. The wall of reality is simply tough out there. Sometimes we have to forget China. The US is rebounding hard. With money pouring into the market from retail investors, the seemingly endless winners can keep going higher.

We are after the hump of quarterly earnings. This is a stock pickers market. There are players who can win. Macy's (MI) kicked things off on Monday. They delivered a terrific quarter. VFC reports soon. They have brands like Wrangler and Vans. Walmart (WMT) also reports on Tuesday. Expectations are way down..

Saks (SKS) also reports on Wednesday. TIF and COH are two other high end retailers that are doing great. TJX is firing off good results. They also have good cash flow. But the stock is way up the past 12 months, and they have to compete with themselves. JCP reports on Friday, and they were outed recently on their Google jumping. DECK and AAPL also report soon, and they are a couple of high growth stocks who have been doing great. We can only expect to hear more great things from them in their report.. Don't be bummed if it sells off, just be ready. Salesforce (CRM) has a lot of room to move higher as well.

If you want to know more about the housing situation, don't wait for the housing report from the government. Home Depot (HD) will tell us everything we need to know. HPQ also reports, and it will be interesting to see how they stack up to DELL. Chesapeake (CHK) will double from its $30 base. Stop, and listen before you go on your next stock buying spree. After the run we have had, the sell side will be stronger than the buy side.

Family Dollar FDO had a great buyout offer, and gave you an easy double. There could be a lot of upside, but you should only play with the house's money.

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