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Hey, I'm Cramer. Welcome to Mad Money. Welcome to Cramerica. Other people want to make friends; I'm just trying to make you some money. My job is not just to entertain, but to educate, to teach you. Call me 1-800-743-CBC. Tweet me @JimCramer. Tomorrow at this time, if things really go awry, we may have a new champion, a new largest stock in the world, and its name is SpaceX.
I know it's supposed to be valued at $1.75 trillion because that's what Elon Musk seems to want it to be worth. But that's just the IPO price. The opening price, the closing price, and everything in between are out of his hands. Instead, they're in the hands of the syndicate desk and the public. And believe me, these are lions Musk can't tame.
Now, we had a boisterous session today. Dow gaining a beautiful 930 points. S&P climbing 1.75%. NASDAQ jumping 2.54%. It stands because the president at first ramped up and then dialed back the hype for an attempted attack on Iran's most important port. But there was something else at work today too, behind the scenes. Today was the day you found out your allocation for SpaceX. And you could see the market starting to levitate early on as we began to hear that the deal was tight as a drum.
When you think about IPOs, consider them in the context of Goldilocks and the Three Bears. You don't want the deal too cold because then it blows up in your face. You don't want it too hot where you have meaningless gunners in there who will send the stock to the stratosphere and flip it at the opening. You want it to be just right. Now, what's just right? Where the stock is a little bit above the deal price. If it's 135, you want the stock to go to about 140, maybe 142. Meanders higher. Perfect. No runaway freight train.
But aside from too hot, too cold, and just right, you know what? There is a little-known fourth bear. Not in the story. So hot, this bear, it burns your face off. This is a scenario where SpaceX goes to totally insane levels. Possibly the point where its market capitalization rivals, if not passes, Nvidia as the company that's the largest in the world. That would be a $4.9 trillion valuation.
How could it get that high? Let me give you the sequence. First, we're told that large institutions got a lot of stock, but informally pledged to buy more in the open market. That's when they put in for 1 million shares at the deal price. Then they get allocated 500,000 shares, and with a wink and a nod, under the assumption that they'll buy another 500,000 in the open market. I think many of my mentors got that call. Okay. Informally, they were most likely told not to sell unless the stock goes so high that the syndicate desk will release you from that no-sale pledge.
Then there are the people known as retail, the home gamers like you who love Elon Musk and can't believe they're going to get in on the ground floor. A little more than 20% of the stock was allocated to retail. These buyers who got anointed — they got some stock from E*TRADE, Robinhood — they can be controlled because they're obeying a disciplined sales desk operator who gave them the stock. That operator can check your account to see if you sold the stock that you pledged you wouldn't. And if you sell, you're not going to get any more Anthropic or OpenAI.
Then there's the wild cards, the people who've never bought a stock before or are using a discount operator who's not part of the syndicate. These are new unguided missiles. They cannot be controlled. They're big in number and they're very unsophisticated. So they'll most likely use market orders because they don't know there's an alternative. They may only be after, say, 50 shares, but that adds up. And when there are a lot of buyers, holy cow, a lot of 50s can be very big.
Now, the people controlling the books running the deal, both Goldman Sachs for big accounts and Morgan Stanley for retail, want to ensure that this IPO doesn't cause a giant blowout. A double would be a resounding defeat for them. Not to mention a real loss for Musk because, of course, he would have left a lot of money on the table. It does get worse. Just a few days later, the stock gets admitted to a bunch of indices including the NASDAQ 100. That means a ton of forced buying from index funds, potentially sending SpaceX still higher.
Now, what should happen? All right, the syndicate desk, who really run the show, should tell brokers that they don't need to stoke demand if there turns out to be a lot of money coming in over the transom. Their clients don't even have to keep the stock or buy more if they don't want to. They're allowed to take profits. That's one thing they should say. This kind of talk isn't usual, and I fear that syndicate desks don't even know how to do it.
The larger accounts who pledged to buy another 500,000 shares in the open market, they should be released or discouraged from doing so. They can sell their stock because of the voluminous amount of stock coming over the transom to buy. The syndicate desk may have a hard time finding sellers. If they don't, an unprofitable company could end up being the biggest stock on earth. That's a mistake, but it can't be changed because neither Goldman nor Morgan Stanley can change it.
What happens then if it goes too high is something we saw with Figma and Cerebras. For a couple of days they continued to go higher, and then they started the long descent down that could have been prevented if their syndicate desk hadn't lost control of the stocks. We want the deals to be under control because otherwise they can be disastrous, like those two I just mentioned.
I know from personal experience. During the dot-com boom, I brought a company public, and it went from a $19 IPO price to $62 where it actually opened, and $2 in a heartbeat. 19 to 62. The pain never really ended. The house of pain, because I sold none myself. It was a very simple problem. The IPO was priced at 19, but there were so many fans of thestreet.com that they used market orders to buy hundreds of thousands of shares, moving the stock up to unsustainable levels.
These buy orders were all batched by a now-defunct broker. And when they came up with an average in the 60s for the buy orders — I don't know, don't ask me how they got it, the official investigation never got that far — but it was clearly unsustainable. I said so publicly at the time. That wouldn't have mattered if it weren't for the fact that the broker who batched the stock together had no sellers in hand. So what happened? He shorted the stock. He shorted it at 63.
Then the broker again, not the syndicate, didn't work with the company, which would have been me. He worked the stock all the way down and made a bazillion dollars being short thestreet.com from the day it came public. And that's the risk here: that some villain appears and tries to wrest control of the opening from Goldman and Morgan Stanley and manages to open the stock at a $4 to $5 trillion valuation, too high, then starts walking it down and makes a gazillion dollars.
Can a $4 to $5 trillion stock really be at hand for a few minutes? Perhaps just as long as it takes to gaff a marlin. The bottom line: oh, gaffing, that's a terrific catch, but if it isn't stuffed and mounted fast, guess what? It ends up stinking to high heaven. Let's go to Mike in New York. Mike, up, Mike.
Hi, Jim. Thanks for having me back.
Oh, Mike, it's a pleasure. What's going on?
Nothing much. You know, several years ago, I mentioned to you Carvana, and about a year afterwards, Carvana ran 2,000%. I don't know if you remember that, but last time I was on, we actually talked about the government shutdown theme. We talked about Hertz and Avis. Hertz doubled, and Avis, well, you know, it ran 600%.
That was a great buy for us. Great buy. Garcia did a good job for us. Go ahead, I'm sorry.
No, it's okay. Last time I was on, we actually talked about the government shutdown theme. We talked about Hertz and Avis. Hertz doubled, and Avis, well, you know, it ran 600%. Now I want to talk to you about Krispy Kreme, symbol DNUT. Kash Patel and Congressman Moore have bought shares, and also recently a director has bought 1.5 million shares. There's social buzz going around that Berkshire Hathaway could possibly buy them out. Berkshire Hathaway bought Dairy Queen in 1997 for $600 million, right? Both companies.
Yeah. Look, I'm going to interrupt you there. And you're a nice fellow, but you know, I don't want people to think that we can bet on Berkshire Hathaway buying, because then that sounds like I've endorsed that too, and I can't do that. There is insider buying. The company does seem to be worth more than it's selling for. I don't know how it got that low with the insider buying. So I think they're on to something. But we're not going to speculate on who's going to buy what on this show, because we have honor.
All right. Look, there's a real risk that SpaceX blows past its opening price tomorrow, and you need to stay cautious in case that happens. Now, on Mad Money tonight, Honeywell is closing in on the spin-off of its aerospace business, and I'm sitting down with the CEO fresh off their investor day to learn more. Then I'm running through the strongest part of SpaceX's business to tell you if the stock could be a buy depending on its debut. And later, I'll go off the charts to see how the major averages are holding up with all the volatility we've seen recently. So stay with Cramer.
Don't miss a second of Mad Money. Follow Jim Cramer on X. Have a question? Tweet Cramer #madmentions. Send Jim an email to
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You know, I've been pretty darn enthusiastic about Honeywell's plan to spin off its aerospace business later this month. And today, the market got as excited as I am, with the stock jumping 6.4% after a bullish analyst meeting. Earlier today, I got a chance to sit down with Vimal Kapur. He is the chairman and CEO of Honeywell International, which will become Honeywell Technologies after the breakup. Take a look.
Well, Vimal, this is the most exciting day. This is Honeywell Technologies' fashion show, so to speak. But there's nothing about fashion here. There are things that are so strong, stories that are so great. I'm going to give you the floor on this because I think this is a story that people will want to be in for multiple years, not just for a couple of quarters, because there's something really exciting going on.
Yeah. No, thanks, Jim. Thanks first of all for having me. It's an exciting story. We've been working since the start of '24 to redefine Honeywell. So we spun off our specialty chemicals business last year, ready to spin off our aerospace business in about two weeks' time. So what it creates is pure-play automation, which focuses on three diverse end markets: automating complex buildings, automating process industry, energy infrastructure, and broad industrial. Everything we do is mission critical. It means our stuff has to work 24/7 because customers can't afford any downtime, which creates a lot of value for our customers. They need more of our offerings, and that lifecycle value really becomes our business model.
All right. Now let's go over these, because I think some people confuse process automation, building automation, industrial automation. Well, they're automation. They're all the same. How do you differ among these three different units?
So automation fundamentally has a very simple stack: sense, control, and optimize. So sense requires a lot of physical sensors because you want to measure pressure, temperature, movements. Then you decide how you want to run it, which is the control part of it. And then you optimize to make sure that you're not having any waste, any energy waste, any production waste, etc. The principles of automation don't really change, whether it is building automation, process automation, or industrial automation. What changes is applications and go-to-market.
These markets are constructed differently over many years. So, for example, there are millions of buildings in the world. The building automation market is generally served through channels. While the process automation market, there are very few process plants, there are very few refineries, LNG plants, pharmaceutical facilities. Most of that is served direct. So our differences in each of these segments is more driven by go-to-market. Our offerings are fundamentally the same. It's like a Lego block. You take a Lego block from here, you put it in there, and that gives us speed to build our products and go to market in a much faster manner.
Okay. So talk about some of the end-market verticals that we really aren't that familiar with you guys. I mean, for instance, you'll be doing some data center, we know you do some warehouse, but hospital — I don't think about your company in those verticals, but you are in there. So if you think of buildings, immediately what comes to our mind is an office building, right? Because we all work from there. I mean, you have 10 million of them that you control and climate control.
But the buildings where we are putting much more focus to grow our install base is, of course, data center, but also hotels. Why hotels? We are focused on it because what we have learned is, as society progresses, everybody wants to consume and have a better quality of life. They spend money in hotels and restaurants and stadiums. So hotels is a vertical for us: controlling the room temperature there and driving energy efficiency, guest experience in terms of the digital app by which we manage the lock systems there, the overall safety and security of the hotel. So it's a big market, and people like Hilton and Marriott, they are all our big customers.
But if you switch to hospitals, the world also needs more health care with an aging population all over the world. And a hospital is a complex system. Imagine in a hospital your core control system is not working, you have a false alarm, which nobody can afford because you have to evacuate all the patients. I mean, that's a very unlikely scenario. So automation in mission-critical segments — that's where our punchline, mission criticality, in hospitals, in data centers, in airport buildings, big part of our business, or in pharmaceutical facilities, semiconductor fabs, power generation — that's what automation is all about.
Now you can put a sticker: this is industrial, this is building. That's how we want to define it. But fundamentally, their characteristics are they have to run 24/7, customers can't afford failure, they want a high level of service and software to support it.
Well, let's talk about one that I think is just a multi-year cycle where mission critical is the definition: LNG. This is something that I think people don't realize that you're deeply involved in, and frankly, these plants would not work if it weren't for you.
Absolutely. So we made three acquisitions in the LNG space over the last three years. The big one was we bought a business from Air Products which liquefies the LNG. Essentially, you take the gas and you have to convert it to liquid. That's the L in LNG. We liquefy the gas with our technology, with a heat exchanger. And then to ship the gas, you need high-speed compressors. That was a Sundyne acquisition we made. And then to control it, we have our control system. So to the LNG companies in the United States and in the Middle East, they are our big customers. Two-thirds of the LNG in the world — two-thirds of it — is produced with our technology, and we don't think that percentage is going to change because we continue to have a strong presence there. We booked more than a billion dollars of business last year. Demand remains very strong. We are booked for three years, and we're looking at factory capacity expansion and how we serve this demand.
Now, when I listen to all these, nothing's a quarter. I mean, there's some short-cycle stuff, but I like long cycle. That's what you've got: long-term secular growth. I know the people who are on Wall Street are a little bit more minutiae-oriented, and they are thinking, 'Wait a second. The Middle East orders must be hurt by the war.' That, to me, is the only glitch I see in terms of the next three to five years that you're laying out.
I think the Middle East war obviously is unfortunate at this point. But I look at it from three unique dimensions. The first is, as oil prices and end-product prices have gone up — diesel prices are up globally 200%, jet fuel prices are up in a similar range — our customers are making more money. So it means they have more cash to spend in the US, in Europe, for buying our catalyst, which is necessary for them to drive their production rate.
Number two, some of the facilities in the Middle East have got destroyed. They need to be repaired. So we are going to get part of that business, which is an unfortunate reality, but that's a business for us.
And number three, we're already seeing, Jim, the countries which import energy, which import crude oil and import gas — things like Japan and Korea and ASEAN and India — they're already thinking, 'What is my alternative source for buying energy?' It means investments are happening to create more capacity in other parts of the world. We're seeing projects coming in Africa now, where there was no local capacity to produce fuels. So there's investment there. We see investments happening by Chinese investors outside China to create more capacity. So there are a lot more dynamics. If you ask my view, it's net positive.
Do we have noise in this quarter and next quarter because we can't ship our product? What we shared during our call earlier this week is now we see much lower pressure due to the Middle East in our numbers. And that's really slowing down. It's like everything — when you know it's settled now, the issues that happened since March and April have settled now. Actually, we expect that our process business in the second half of this year is going to go to high single digits because we have such a strong backlog and such a strong demand that the cycle is coming back into that business.
Last question. When I look at your book of business, and I've studied and studied and studied, I don't really find a lot of analogs. I mean, someone could say that Siemens is an analog, some people could say Emerson. I think those are false narratives. I think what might be difficult is for people to get their arms around exactly how to define your company. A lot of people want to say, 'What is this company that is just a mélange of different divisions?'
So Jim, that's the opportunity that we are creating. There is no large-scale automation pure-play company. Automation was always part of big companies like Honeywell, like Siemens, like ABB, and so on. We are taking the opportunity to build a pure-play automation company across multiple sectors, and the opportunity is more compelling now with AI coming in. If the power of AI is going to redefine automation, because automation systems create data, that data was not used so far beyond doing the control.
We have it, and that's physical AI, which is the only company I know that is basically a pure physical AI play. I didn't want to mention that because it's too sizzle, and I like the steak that you're bringing.
Absolutely. The work we have been doing to convert that data into action — why that is important is our customers are not having skilled people to run their operations. The operators, the technicians which are required to run hospitals, to run refineries, to run pharmaceutical facilities — less of these people are available. Also, with an aging population and population shrinkage, the net workforce is not going to be increasing. It's going to be decreasing over a period of time. So they're looking for ways and means to make younger people more productive using AI tools, or to automate a portion of work. So they need less people because they don't have them.
So our customers are looking at it not as a productivity opportunity. They are looking at it as a revenue-generation opportunity. So physical AI for us is built on our domain knowledge. It's built upon the data which we possess in our system. And that's an optionality our company offers for the future.
Well, look, my charitable trust has a big position. We want to be bigger. I think this is the kind of company that is not expensive, that has a great growth path. I want to thank Vimal Kapur, Honeywell's chairman and CEO, who has rebuilt this company, both pieces. We're keeping both pieces because both are terrific. Thank you so much.
Coming up, with less than 24 hours until SpaceX is launched into the stock market, Cramer zeroing in on what he sees as the key component to its success. Next.
You know, I've been pretty darn enthusiastic about Honeywell's plan to spin off its aerospace business later this month. And today, the market got as excited as I am, with the stock jumping 6.4% after a bullish analyst meeting. Earlier today, I got a chance to sit down with Vimal Kapur. He is the chairman and CEO of Honeywell International, which will become Honeywell Technologies after the breakup. Take a look.
Well, Vimal, this is the most exciting day. This is Honeywell Technologies' fashion show, so to speak. But there's nothing about fashion here. There are things that are so strong, stories that are so great. I'm going to give you the floor on this because I think this is a story that people will want to be in for multiple years, not just for a couple of quarters, because there's something really exciting going on.
Yeah. No, thanks, Jim. Thanks first of all for having me. It's an exciting story. We've been working since the start of '24 to redefine Honeywell. So we spun off our specialty chemicals business last year, ready to spin off our aerospace business in about two weeks' time. So what it creates is pure-play automation, which focuses on three diverse end markets: automating complex buildings, automating process industry, energy infrastructure, and broad industrial. Everything we do is mission critical. It means our stuff has to work 24/7 because customers can't afford any downtime, which creates a lot of value for our customers. They need more of our offerings, and that lifecycle value really becomes our business model.
Right. Now, let's go over these, because I think some people confuse process automation, building automation, industrial automation. Well, they're automation. They're all the same. How do you differ among these three different units?
So, automation fundamentally has a very simple stack: sense, control, and optimize. So, sense requires a lot of physical sensors because you want to measure pressure, temperature, movements. Then you decide how you want to run it, which is the control part of it. And then you optimize to make sure that you're not having any waste, any energy waste, any production waste, etc. The principles of automation don't really change, whether it is building automation, process automation, or industrial automation. What changes is applications and go-to-market.
These markets are constructed differently over many years. So, for example, there are millions of buildings in the world. The building automation market is generally served through channels. While the process automation market, there are very few process plants, there are very few refineries, LNG plants, pharmaceutical facilities. Most of that is served direct. So our differences in each of these segments is more driven by go-to-market. Our offerings are fundamentally the same. It's like a Lego block. You take a Lego block from here, you put it in there, and that gives us speed to build our products and go to market in a much faster manner.
Okay. So talk about some of the end-market verticals that we really aren't that familiar with you guys.
end market verticals that we really aren't that familiar with in the US. I mean, for instance, you'll be doing some data center, you know, you do some warehouse, but hospital, hotel — I don't, I'm not, I don't think about your company in those verticals, but you are in there.
So if you think of buildings, immediately what comes to our mind is an office building, right? Because we all work from there.
You have 10 million of them that you control and climate controlling.
But the buildings which are where we are putting much more focus to grow our install base is of course data center, but also hotels. Why hotels we are focused on is what we have learned is as society progresses, everybody wants to consume and have better quality of life. They spend money in hotels and restaurants and stadiums. So hotels is a big vertical for us, controlling the room temperature there and driving energy efficiency, guest experience in terms of the digital app by which we manage the lock systems there, the overall safety and security of the hotel. So it's a big market and people like Hilton and Marriott, they are all our big customers. But if you switch to hospitals, the world also needs more health care with aging population all over the world, and hospital is a complex system. Imagine in a hospital your core control system is not working. You have a false alarm which nobody can afford because you have to evacuate all the patients. I mean, that's a very, you know, unlikely scenario. So automation in mission critical segment is that's where our punch line, mission criticality in hospitals, in data center, in airport buildings, big part of our business, or in pharmaceutical facilities, semiconductor fabs, power generation — that's what automation is all about. Now you can put a sticker, this is industrial, this is building, that's how we want to define it, but fundamentally their characteristics is they have to run 24/7, customers can't afford failure, they want high level of service and software to support it.
Well, let's talk about one that I think is just a multi-year cycle where mission critical is the definition — LNG. This is something that I think people don't realize that you're deeply involved in, and frankly these plants would not work if it weren't for you.
Absolutely. So we made three acquisitions in LNG space over the last three years. The big one was we bought a business from Air Products which liquefies the LNG. Essentially you take the gas and you have to convert it to liquid. That's...
That's L and LNG is us. We liquefy the gas with our technology, with a heat exchanger. And then to ship the gas you need high-speed compressors. That was a Sundyne acquisition we made. And then to control out of it we have our control system. So to the LNG companies in the United States and in the Middle East, they are our big customer. Two-thirds of the LNG in the world, two-thirds of it is produced with our technology, and we don't think that percentage is going to change because we continue to have a strong presence there. We booked more than a billion dollars of business last year. Demand remains very strong. We are booked for three years and we're looking at factory capacity expansion and how we serve this demand.
Now when I listen to all these, nothing's a quarter. I mean, there's some short-cycle stuff, but I like long cycle. That's what you've got — long-term secular growth. I know the people who are on Wall Street a little bit more minutiae-controlled, and they are thinking, wait a second, the Middle East orders must be hurt by the war. That to me is the only glitch I see in terms of the next three years to five years that you're laying out.
I think the Middle East war obviously is unfortunate at this point. But I look at it from, you know, three unique dimensions. The first is as the oil price and end product prices have gone up, the diesel price is up globally 200%. Jet fuel price is up in a similar range. Our customers are making more money.
So it means they have more cash to spend in the US and in Europe for buying our catalyst, which is necessary for them to drive their production rate.
Number two, some of the facilities in the Middle East have got destroyed. They need to be repaired,
Right? I thought that might be you.
So we are going to get part of that business, which is unfortunate reality, but that's a business for us. And number three, we're already seeing, Jim, the countries which import energy, which import crude oil and import gas, things like Japan and Korea and ASEAN and India, they're already thinking what is my alternative sources for buying energy. It means investments are happening to create more capacity in other parts of the world. We're seeing projects coming in Africa now where there was no local capacity to produce fuels. So there's investment there. We see investments happening by Chinese investors outside China to create their more capacity. So there are a lot more dynamics. If you ask my view, it's net positive. Do we have a noise in this quarter and next quarter because we can't ship our product? What we shared during our call earlier this week is now we see much lower pressure due to the Middle East in our numbers, right?
And that's really slowing down. It's like everything when you know it's settled now, the issues, what happened since March, April has settled now. Actually we expect that our process business in the second half of this year is going to go to high single digit because we have such a strong backlog and such a strong demand that the cycle is coming back into that business.
Last question. When I look at your book of business and I've studied and studied and studied, I don't really find a lot of analogs. I mean, someone could say that Siemens is an analog, some people could say Emerson. I think those are false narratives. I think that what might be difficult is for people to get their arms around exactly how to define your company. A lot of people want to say, what is this company that is just a mélange of different divisions?
So Jim, that's the opportunity that we are creating. There is no large-scale automation pure-play company. The automation was always part of big companies like Honeywell, like Siemens, like ABB and so on. We are taking the opportunity to build a pure-play automation company across multiple sectors, and the opportunity is more compelling now with AI coming in. If the power of AI is going to redefine automation, because automation systems create data, that data was not used so far beyond doing the control.
We have it, and that's physical AI, which is the only company I know that is basically a pure physical AI play. I didn't want to mention that because it's too sizzle, and I like the steak that you're bringing.
Absolutely. The work we have been doing to convert that data into action. Why that is important is our customers are not having skilled people to run their operation. The operators, the technicians which are required to run hospitals, to run refineries, to run pharmaceutical facilities — less of these people are available. Also with aging population and population shrinkage, net workforce is not going to be increasing. It's going to be decreasing over a period of time. So they're looking for ways and means to make younger people more productive using AI tools or automate a portion of work. So they need less, net less people because they don't have it. So our customers are looking at it not as a productivity opportunity. They are looking at it as a revenue generation opportunity. So physical AI for us is built on our domain knowledge. It's built upon the data which we possess in our system. And that's, you know, an optionality our company offers for the future.
Well, look, my child trust has a big position. We want to be bigger. I think this is the kind of company that is not expensive, that has a great growth path. I want to thank Vimal Kapur, Honeywell chairman and CEO, who has rebuilt this company, both pieces. We're keeping both pieces because both are terrific. Thank you so much.
Coming up, with less than 24 hours until SpaceX is launched into the stock market, Cramer zeroing in on what he sees as the key component to its success. Next.
This is an incredibly unpredictable market between the recent AI sell-off, the war, tomorrow's SpaceX IPO. But some things remain constant, like the fact that we're hostage to interest rates, both from the bond market and the secured overnight financing rate for the banks, which plays a big part in the economy. With the SpaceX IPO settling Monday, quarterly tax payments due the same day, and Treasury settlements hitting at the same moment, we could be looking at a liquidity crunch right before the next Fed meeting, and we don't like those. Do not take it from me. Let's go off the charts with Jessica Insk. She's a terrific technician, brilliant director of investor research at stockbrokers.com and co-host and founder of the Market Maker podcast. Jessica, you're taking on a lot, but I love it because I like what I see. Welcome to Mad Money.
Yeah, I'm happy to be here. Thank you so much, Jim. All right, we went down a rabbit hole last night. Are you ready for it?
Okay, here we go. So let's just start with what we normally look at. So the market-cap-weighted S&P 500, as you know, I like to look at the 13, 26, and 40 weekly moving averages. As long as they're sloping upwards and acting as means of support, that means we are in a bullish trading cycle, which is fantastic. Now, I've added these very important levels, which are prior to the Iran conflict. I want to make sure that that's maintained. That is my floor of support. If that isn't maintained, then that means that we could have some issues with what's happening. The headline risk is higher, perhaps inflation data, things of that nature. So that's the concern. 6952, that's a lot lower. I don't want to end up there, but if we hold support here, I'm still not worried because we also have some convergence with those moving averages.
But we rallied today. That's great. We're in a lovely place. Still trading in a bullish trading cycle.
So now if we just zoom in a little bit tighter and look at the daily chart, these are the same lines. So this is where I need to be. Got the 20-day and the 50-day moving average. What I wanted to point out to you, and I didn't put a line here, but it's so interesting, it's where we found support is we had a gap up here. And this is the beginning of actually last time we spoke on April 13th, we talked about how earnings season is what mattered. We were looking through oil and we cared about earnings. We rallied. We don't want to erase that. So we found support there. We got some headlines today which certainly helped, perhaps we'll have a deal on the board. But looking past oil and subsequently interest rates seems to be the theme in my brain.
Right. So at this point, I'm hearing things that make me feel pretty confident. But I shouldn't get overconfident, should I?
We never get overconfident because the market throws something at us, Jim.
Correct. I learned that from you.
Yes, I'm very, very correct.
