The Simple Way to Handle This Market

Do you fade the negative opening? Maybe.

I believe that the theory of why we're looking weak -- not-so-hot earnings -- is just a joke. It's pretty clear that oil is the leader to this market and we don't go down when oil, the commodity, is good.

In fact, the big mistake is to think that financials can't be cordoned off, and that financials can shut the market down.

I am now in the camp that says the longer the bond market is locked down, the more likely that the Fed eases. That's what the 4.75% on bonds, where we are going, is about.

You need to recognize that the next thing you hear will be aggressive earnings cuts for the brokers that will make their multiples seem very high. That, and the collapse of the next leg of mortgage brokers, like the Novastars (NFI - commentary - Cramer's Take) (which does not have the capital, in my opinion, to ride through a Countrywide (CFC - commentary - Cramer's Take) quarter. American Home (AHM - commentary - Cramer's Take), anyone?). And the housing decline is hardly new, which is what makes me feel that we can have a rally.

Meanwhile, the commercial market, as viewed by the easy sale of Blackstone's (BX - commentary - Cramer's Take) Equity Office Properties, stays strong, as did the earnings from SL Green (SLG - commentary - Cramer's Take).

No mortgages for anyone other than the rich, no more big fees for bankers, back to the 2002 earnings for brokers and back to homebuilder dropping like flies.

Own tech and oil and the rest of the bull markets.

And avoid the rest.

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Please note that due to factors including low market capitalization and/or insufficient public float, we consider Novastar to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

At the time of publication, Cramer had no positions in any of the stocks mentioned in this post.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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