Let It Bounce

Not enough downside left? Sure feels like it. As I said this morning, I can only find 1,000 more points to go, which, when you think about it, simply isn't that much of a pole-axing. (See how I got to 5,320 and what to buy now off it.)

Today's market has a couple of things going for it and the great technician Rick Bensignor says it is time. First, we have a route -- albeit probably momentary -- of the shorts in the banking game. I continue to think that nonmortgage play Goldman Sachs (GS - commentary - Cramer's Take) is best.

Second, General Electric (GE - commentary - Cramer's Take) is not down for now, a recognition that it can raise all of the money it needs through government programs.

Third, obviously, the Schering Plough (SGP - commentary - Cramer's Take) and Merck (MRK - commentary - Cramer's Take) merger shows -- like UST and Altria (MO - commentary - Cramer's Take) and Wyeth (WYE - commentary - Cramer's Take) Pfizer (PFE - commentary - Cramer's Take) -- the credit markets aren't totally kaput.

Fourth, the oil complex, which includes the agriculture complex, has a bid courtesy of OPEC.

And finally, the Philadelphia Semiconductor Index (SOX) continues to outperform. Qualcomm (QCOM - commentary - Cramer's Take) got a number bump last week and no one cared.

The market is ridiculously oversold, the insider buying is off the charts, gold is down, the Baltic Freight Index (BDI) is up again and it is hard to imagine a 1,000 point fall from these oversold levels.

Let it bounce!

Random musings: A must read -- what Warren Buffett should have said, courtesy Doug Kass, is the best read of the day... Would someone tell Tim Geithner that Tier One capital is the way to rate banks? If GE can show its real portfolio, it could be like Morgan Stanley (MS - commentary - Cramer's Take), but because it has been unwilling to do so is hurting the stock. Helene Meisler has pointed out the divergence that my friend Erin Burnett talks about this morning on CNBC.

At the time of publication, Cramer was long Altria, Qualcomm and Morgan Stanley.

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