Slapped Silly by Leaks

Too fast, too furious -- tell me that isn't how you felt today as one after another stress test was leaked and it all sounded like gospel and, most important, who could check it out?

It was leaked that Morgan Stanley (MS - commentary - Trade Now), who all my sources said would have to raise money, didn't have to raise money. But then -- because the leak was wrong -- it turns out that it does need to raise money.

These kinds of leaks are toxic: Morgan Stanley goes from being a company that I was sure could buy the rest of Smith Barney to a company that has to do a spot secondary. But then again, even that might not have been that bad, especially because every spot secondary after being disastrous for so long is now greeted positively!

Meanwhile, incredible whiplash in Devon (DVN - commentary - Trade Now) and XTO (XTO - commentary - Trade Now), two companies thought to have lost their way, was followed by a great number at Anadarko (APC - commentary - Trade Now) -- much better than expected.

When you get these kinds of earnings with nat gas at $3, what happens at $6? When you get these kinds of bank profits, enough to be able to take a pass on more capital from the government, how much money can these banks make when housing stops its depreciation, which -- judging by the multiple offers piece in USA Today -- could be any minute? I am sticking by my June 30 prediction, as cockamamie as that once was.

And who even has breathing room for Cisco (CSCO - commentary - Trade Now), which looked good but my good friend Doug Kass is saying, whoa, don't get too excited.

This is supposed to be some sleepy week in May -- nobody's even focused. But everyone was so negative -- witness the frantic move to buy or cover Disney (DIS - commentary - Trade Now) and people still seem to be leaning the wrong way. It has to do with the endless negativity left over from the depression.

The depression's gone. A recession never felt so good.

At the time of publication, Cramer was long Cisco.

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