I'm Done Buying

I usually don't like to say this, but I had chats today with Bryan Ashenberg from Breakout Stocks and Stephanie Link from Action Alerts PLUS, and all of us said the same thing: We aren't doing any more buying until this market comes down.

So, we don't want to sweat the program. Let it rain.

Last night I got a call about discipline -- what do I do when I like a story but the stock has run above my basis?

I typically think, well, it depends. If the story's solid, let's say a Honeywell (HON - commentary - Trade Now) or Johnson Controls (JCI - commentary - Trade Now), where I think next year's numbers are too low, then I might break price and pay up.

But in this market, you aren't just paying up, you are breaking every bone of discipline in your body. You are simply begging for a bruising. You could look back 10 days from now and say, "How did I ruin my basis here? What was I thinking?"

So, this post is simply dedicated to the proposition that if we were to come down a bit, then there is the possibility of getting back in and doing some buying.

Right now, unless it is something like a Nucor (NUE - commentary - Trade Now) that I mentioned earlier that is barely up for the year, I have to wait.

We are too overbought. We are too high. I bet a huge percentage of the sales here will look good in five days.

I bet few of the buys will, though.

At the time of publication, Cramer was long Johnson Controls.

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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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