No Crash Yesterday, But Was It a Bottom?

It does seem like we have hit a bottom for many stocks in the good economy, but without that whoosh, that crescendo, I believe there are tons of weak holders that are just waiting to get out and tons of shorts getting ready to lean again after any lift.

I look at so many stocks right now and I think, "Hmm, they have held": Caterpillar (CAT - commentary - Cramer's Take), Procter & Gamble (PG - commentary - Cramer's Take), IBM (IBM - commentary - Cramer's Take), Verizon (VZ - commentary - Cramer's Take), Du Pont (DD - commentary - Cramer's Take), JPMorgan (JPM - commentary - Cramer's Take), AT&T (T - commentary - Cramer's Take), GE (GE - commentary - Cramer's Take), McDonald's (MCD - commentary - Cramer's Take), Chevron (CVX - commentary - Cramer's Take), Disney (DIS - commentary - Cramer's Take), Wal-Mart (WMT - commentary - Cramer's Take), tons of Dow stocks.

Again, though, the lack of a disastrous market yesterday says to me we still have hedge fund and mutual fund redemptions that will push down stocks once we are no longer oversold.

That means, enjoy the bounce but when we get to the next overbought level, you have to trim inventory again, because even though we will have lower cash rates, courtesy of the Fed, we will NOT have good earnings and we will not have strong hands. That means more up-and-down action with more stocks ending down than up, particularly in the ever-declining financial sector.

Random musings: As I told subscribers of Action Alerts PLUS this morning, everyone knew the "new" negative on Schering-Plough (SGP - commentary - Cramer's Take) this morning from the 8-K. What people don't know is the future, and SGP said there is some stabilization. ... Doug's piece on Greg is an extraordinary must-read.

At the time of publication, Cramer was long Goldman Sachs, McDonald's, Verizon and Schering-Plough, and was long GE as part of his contract with CNBC.

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