Here are the things we want to see to trust this stock market rally

CNBC Finance

3 min read

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch â an actionable afternoon update, just in time for the last hour of trading on Wall Street. Stocks moved higher on Monday after President Donald Trump announced a five-day postponement of all military strikes against Iranian power plants and energy infrastructure. The suspension of military activity was based on what he described as "very good and productive conversations" with Iran. Axios later reported that U.S. envoys Steve Witkoff and Jared Kushner held talks with the speaker of the Iranian parliament, according to an Israeli official. However, the speaker later denied the negotiations through a post on the social media platform X, causing stocks to give back a significant portion of their gains. Still, Trump's comment that he is looking to make a deal with Iran is proving relief to stocks, oil, and the bond markets, with WTI crude falling to about $90 and the 10-Year yield dipping to about 4.35%. Clearly, more information is needed about the details of these talks, but at least for now, the market is liking this first sign of an off-ramp. Here's what we are looking for to make our next move. A few things we'd like to see to trust the rally are more evidence that a dÃ©tente is in the works, oil tankers moving through the Strait of Hormuz, and a halt to missile launches. Without signs of easing hostilities, the oversold bounce on Monday may be nothing more than that. As always, we're staying flexible in response to evolving headlines, but given the fog of war and the lack of details surrounding negotiations, we have a hard time buying into rallies on mixed headlines. But if there's a lesson to be learned by Monday's action, it's that there is potential for a powerful rally if there is a resolution to the war, and that's why we can't be too negative. No major earnings reports after the closing bell or Tuesday morning. The March S & P Global US Manufacturing and Services PMIs are out tomorrow before the open. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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Here are the things we want to see to trust this stock market rally

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