Deciphering the Washout

Still trying to figure out the option effect vs. the Obama cram-down/Eaton Vance (ETN - commentary - Cramer's Take)/Bank of America (BAC - commentary - Cramer's Take).

Still trying to figure out why the manically powerful decline in oil isn't spiking the recession stocks. Still trying to figure out how buyers just completely and utterly disappear on these days even as they thought that these prices going up were things of beauty.

Oil, tech and bank stocks have been the leaders, and they were mowed down like a corn field today. I am amazed that oil can just drop 10% with no takers on no new news, because it isn't like the economy fell off a cliff over the weekend. That's a severe overreaction.

Bank of America alone, without the president's help, would have been OK but due for a pullback. The president's gaffe -- or populist rap -- made owning the stock untenable and made owning the UltraShort Financials ProShares (SKF - commentary - Cramer's Take) brilliant -- thank you, Doug Kass!

(Remember I don't condone these products, but I know people will use them and this recommendation today proves, once again, that Doug Kass has tomorrow's papers. Remember he told you he was an aggressive seller last week. Whenever I see these things, I point them out because I have a self-interest: RealMoney is the only research product you need.)

It is tech that most intrigues me. I don't like it when companies that preannounce good have to give you an actual report, because unless it is better than good, you typically get a free short. That is how IBM (IBM - commentary - Cramer's Take) feels to me and I suspect it will be down tomorrow for not having enough juice. I am sure someone will downgrade it thinking, "A-ha -- this is why it needed Sun Micro (JAVA - commentary - Cramer's Take)!"

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