Not Necessarily the News

I am fond of saying, "It's rarely just one thing, but, whatever it is, it's never just the news." And that was the case Wednesday when the market shot up, seemingly out of nowhere, on talk of a deal in the works on the dreaded fiscal cliff. At least that was the perception -- that there was some major progress on the fiscal cliff issues -- which, on Wednesday, turned the market back up from better than a 100-point deficit in the Dow Jones Industrial Average in the first hour of trading. At the close, the Dow was higher by more than 100 and the intraday move was 220. But in case you think that it was just about the news (which it never is), let's take a closer look.

In the abbreviated Friday session after Thanksgiving, the market exploded higher and left a bunch of unfilled gaps. Those gaps were downside targets for a pullback. Though I was remiss in not citing those gaps in Tuesday's column, I did show the gaps in my charts and said that I was looking for further weakness over the near term that I would use to add to my positions. The idea, as usual, is that downside gaps represent unfinished business for the market, and once the gaps are filled, it generally makes sense to buy for the next bounce....775 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

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

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.

IDC 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.