Rally Leaves Banks Behind

Let's see. Interest rates rising swiftly. The bank index just sliding so badly I can't keep track of it, like the North Face of Everest.

Darned bank index is almost down to where it was when the Dow Jones Average was at 7000! AIG (AIG - commentary - Cramer's Take) at multiyear lows. Wachovia (WB - commentary - Cramer's Take) and Sun Trust (STI - commentary - Cramer's Take) imploding. It goes on and on.

So how much was the market down today with that backdrop?

Nope! Amazingly, it was up. A whole new paradigm in our face or, as RevShark cautions, the wrong market at the wrong time.

I have to tell you that it sure seems like the new paradigm. The idea that we could "do without" the banking system is preposterous, but I am not worried because there is always mutual fund money to throw at these.

They won't stop throwing it either because, as I said on video today, they can't resist. The stocks are all "too cheap."

Cramer: I've Been Too Upbeat On Wachovia, AIG

You don't believe me? The housing index is going up as the banks are going down. That means people think the homebuilders are worth more than the banks.

Meanwhile, the new tech companies -- the mankind companies as my friend Donny Deutsch suggests we call them, because they save mankind, the Emersons (EMR - commentary - Cramer's Take) and the Eatons (ETN - commentary - Cramer's Take), are just roaring, as are the steel and iron stocks (U.S. Steel (X - commentary - Cramer's Take), Nucor (NUE - commentary - Cramer's Take) and Cleveland Cliffs (CLF - commentary - Cramer's Take) can't be contained.) They are as good as AIG and Bank of America (BAC - commentary - Cramer's Take), WB and STI are as bad.

I have never seen anything like this in all my years of trading. The most important S&P group just disappearing, being replaced by others as surely as the financials took over the joint in the mid-1980s.

This is revolutionary and it is positive; if we were levered as I thought we were to Lehman (LEH - commentary - Cramer's Take) and Nat City (NCC - commentary - Cramer's Take), we would be appreciably lower. Chalk it up to the government's wise intervention with Bear (BSC - commentary - Cramer's Take) and the mutual funds that won't quit.

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