Yep, Yesterday's Selling Was Phony

Soggy outside, soggy day. No doubt about it. But believe me, if the oil futures were up, we would be roaring again. The question put to me from Doug Kass is whether the late selloff in the last session was "phony."

I think it was. I think that if oil were up, we would have seen it higher so that the selloff today is random and reversible if oil turns.

Here's why: On Monday I believe we will see still one more huge wave of money coming into this market. It will head to winner funds, and the winner funds are overweighted in Apple (AAPL - commentary - Trade Now), Research In Motion (RIMM - commentary - Trade Now), Oracle (ORCL - commentary - Trade Now), Google (GOOG - commentary - Trade Now) and the other "usual suspects." That's why I think you have to get ahead of it and use the cover of the "invisible ceiling" of the Dow Jones Industrial Average, as USA Today points out, to get into the re-rotation into the Nasdaq, which is up a remarkable 18% so far this year.

Can we have profit-taking? Sure, but the dread of the bears, and what they have continually missed, is that people want to be in stocks. They want to be in anything that is "hot," and the hottest of the hot is tech.

I disagree with some commenting this morning on TV about the banks. The refinancing banks like Marshall & Ilsley (MI - commentary - Trade Now), this morning's secondary, remain very strong. Bank of America's (BAC - commentary - Trade Now) amazing and reflecting that there's just so much money headed to that name. In the meantime, I think negative research commentary of the costs of repaying TARP, something I saw multiple times today, is just fatuous. TARP money is expensive, and I think that we have to focus on 2010 numbers, which are all going up without TARP.

In summary, there was no reason for frenzied selling yesterday afternoon. The sellers may have "seen" oil, but I don't think so.

I would buy the market into this weakness ahead of Mutual Fund Monday.

At the time of publication, Cramer was long Bank of America.

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