Jim Cramer's Best Blogs

Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

• a too-obvious commodity linkage,
• why selling makes sense, and
• the resilience of the mobile Internet industry.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.

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Commodity Linkage Is Too Binary For My Taste
Posted at 12:57 p.m. EDT, Sept. 21, 2009

Nat gas -- down. Oil -- down. Gold -- down. At one point that would have led to a sharp rally.

Not in this market.

This is a market in constant need of reassurance from the commodities out there to justify the run. So when we don't get the verification, we have no place to go but down.

Last week I lamented the endless linkage to these commodity indicators because the more they go up, the less likely we can have the kind of sustained, low-inflation rally that can take us beyond these levels.

It hasn't mattered to date, because rates remain low -- in part because of Federal Reserve bond-buying and also because away from commodities, there is very little inflation in the system.

But each new auction is going to put pressure on this relationship and make the so-called signposts much less benign. In fact, unless we delink, we are going to find the signposts downright malignant.

We have a vacuum of data right here and now, because we are in no man's land when it comes to earnings. If we catch some preannouncements, we can delink to the downside. (I don't expect any preannouncements to the upside.)

We are captured in a dismal world where we need more to go on than these varied commodities.

We don't have it.

So we go down on them. Or up.

Too binary for this guy's taste. Especially today!