The 10% Pullback Mob

I like this healthy pullback in the Nasdaq, something I hope our colleague Dan Fitzpatrick weighs in on with his excellent look at the PowerShares QQQ (QQQQ - commentary - Trade Now) technicals, which he liked so much and I used as the basis of my "Off the Charts" segment on Mad Money -- by far the most popular segment I do.

You want this pullback because this rally is entirely based on the "always right/never wrong" 10% pullback crowd. Are you familiar with these people? They want to buy on any 10% pullback beginning from the $28 QQQQ level -- it is now $36. I swear, with any 10% pullback they will be all over this opportunity, but until then, count them out.

Today we will see them en masse saying this is the beginning of the 10% pullback and "I told you so." The brilliance of the 10% pullback crowd is that it is impossible to be wrong because you simply move up the level where you are calling for it. They called for it at $28, $30, $32, $34 and all sorts of areas where we had shallow pullbacks.

They nailed every one that they didn't get to buy, but they stuck by their discipline, which is a heck of a lot better than "being a trader," as I am or Doug Kass is.

The only thing that is worrisome to the 10% pullback crowd who do their newspeak with the news-givers is Apple (AAPL - commentary - Trade Now). The darned thing has spoiled more 10% pullbacks before they can get to 10% than any other stock.

But here we go again.

You want an indicator that works? How about this -- as soon as you hear or read three straight commentators claiming this is the beginning of the 10% pullback, don't buy unless it is Apple, because it is all about deadlines next week and you can't take any of that stock off until then.

Random musings: Maybe Valero (VLO - commentary - Trade Now) is just a really bad company. First, what's with the second-quarter loss? This should have been a golden moment for a refiner as they have been raising prices like mad and outages have allowed for some excellent gouging. Valero also bought back a gigantic amount of stock much higher -- perhaps the most aggressive buying of stock on the New York Stock Exchange -- and now it offers 40 million shares? That's a nightmare. Valero CEO William Klesse is going for a potential "Wall of Shame" entry.... Anybody know why Bill Ackman didn't go after Saks (SKS - commentary - Trade Now)? Wouldn't that have been a better target? How about Liz Claiborne (LIZ - commentary - Trade Now)? Any back-of-the-envelope calculation would have told you that Target (TGT - commentary - Trade Now) is one of the few retailers that generated any wealth at all over the last 10 years. It also had one of the most sophisticated and best boards imaginable in part because of the excellent and legendary charity programs that it runs.... Nucor (NUE - commentary - Trade Now)declares its 145th dividend -- awesome company, just awesome.

At the time of publication, Cramer had no positions in the stocks mentioned.

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At the time of publication, Cramer had no positions in the stocks mentioned. Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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