Even the Worst Stocks Find Redemption

Tough to crash with Goldman (GS - commentary - Cramer's Take) and the semiconductor index (SOX) going up and the banks and tech stabilizing. Those should be going down if the woes of the earlier part of the day are real. But that doesn't mean we can't have another nettlesome day.

I look at this market today and see something that should be happening now -- stabilization -- with a minus 6 on the oscillator, a tough time taking stocks down that have been down relentlessly. Some of the worst-performing stocks should be bouncing here, and it looks like they are.

This morning's piece by Doug Kass about the international margin calls, plus the worries that hedge-fund managers must be having given the pending redemptions, makes me think that yesterday's horrific action in all but the stocks that are winners -- and if you own the winners, you are not getting redemptions -- rings true to me.

Think about it: If you own the financials, you have been crushed this quarter, and that's where I suspect the heavy redemptions are coming.

The redemptions do end, and I always regarded them as something that happens in the last week of the quarter, not in the first week.

You know that this is one of those moments, by the way, where if the Fed were to cut again -- I know, that's out of the question given how well they think we are doing -- we could be buying time to stave off the bank apocalypse I described in the previous piece.

Of course, the reality is that the Fed thinks it can stop things like the Dow price increase if it stops cutting rates and it thinks that the dollar can be protected -- so wrong right now when we need to attract foreign capital to buy our assets and buy our goods -- and so we are in a dicey moment.

But, again, I don't think it's crash-dicey, and now that the redemptions are being worked through, we may set up for a multiday bounce in the ne'er-do-wells.

Random musings: Another ridiculous research call on semis: the Goldman upgrade of Lam Research (LRCX - commentary - Cramer's Take). Lame Research!

At the time of publication, Cramer was long Goldman Sachs.

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