Safety Last

When you see Gilead (GILD - commentary - Trade Now), Coca-Cola (KO - commentary - Trade Now), Abbott Laboratories (ABT - commentary - Trade Now) and Merck (MRK - commentary - Trade Now) down on this otherwise perfect day, you have to recognize that consistency is so out of favor as to make safety be the killer -- the true generator of underperformance.

People want Sears (SHLD - commentary - Trade Now) because they want to play companies that will benefit coming out of a recession and are still solvent. They want Johnson Controls (JCI - commentary - Trade Now) because they need some play on autos because the auto market is coming back.

They want overvalued companies like Fortune Brands (FO - commentary - Trade Now) and Masco (MAS - commentary - Trade Now) because they won't be overvalued when housing comes back. And they want anything that has anything to do with oil.

I have said over and over again that the tells to this market are Schlumberger (SLB - commentary - Trade Now) and Transocean (RIG - commentary - Trade Now) and here they go again. The notion that natural gas stocks correctly predict the future is in full force.

You saw the natural gas stocks roll over viciously ahead of natural gas peaking, so you have to believe that today's rally in higher-quality players Southwestern (SWN - commentary - Trade Now) and Devon (DVN - commentary - Trade Now) -- plays on the Haynesworth shale; remember that? -- shows that nat gas is about to explode to the upside.

Meanwhile people have decided that the shopping season is back with an amazing move in Target (TGT - commentary - Trade Now) -- maybe people are happy that the Pershing plan is not happening! Also VF Corp. (VFC - commentary - Trade Now) and Nike (NKE - commentary - Trade Now), the two most beaten up in the group just on fire.

So much lack of safety.

It is not a new theme, but it is really in force today for certain.

At the time of publication, Cramer was long Nike, VF Corp., Devon and Gilead.

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