Market Casting Its Anti-Obama Votes

The press and the stock market pundits are finally diverging. Most of the press speaks of love for President Obama more than ever and distinguishes his stature from the losses suffered yesterday at the ballot box.

But the market prognosticators are breaking ranks. We are hearing talk of possible "gridlock," which would be fantastic for the drug companies and the utilities. We are also hearing that the possible continued revolution against Wall Street may mean nothing, either. I refuse to believe that Corzine's loss was due to his old Goldman Sachs job. I think he lost his job out of anger toward Obama and Congress for focusing on anything but jobs. Obama worked hard to get Corzine votes, and I think that didn't help one bit.

The anti-Obama agenda buyers aren't fooling anyone with their buying. When you purchase the utility and drug stocks, you are usually making a statement against the economy and for recession. But a whole other set of buyers is coming in with the belief that all business will do better with this new regime, as the health care issue has frozen businesses large and small.

The latter could be deeply affected by Cisco's (CSCO - commentary - Trade Now) comments tonight. But the drugs and the health care stocks in general should have multiday moves, as this is such a game-changer, punctuated by ideological reassurances from Nancy Pelosi that it is even more important to pass some sort of radical agenda that we now know will not get done,

Simple reminder: Wellpoint (WLP - commentary - Trade Now) should make $6.50. Used to have a 14 multiple. If the lesson of "Hillary-care" holds, then the big multimonth run could be upon us, based on higher estimates (the old numbers take into account aggressive/negative government intervention courtesy of the former love affair with Obama) and extreme multiple expansion, particularly for those companies such as Abbott (ABT - commentary - Trade Now) or Wellpoint that have organic growth.

The utility trade is more difficult, as the coal utilities were going to be winners, not losers, on cap-and-trade, because the coal lobby had pretty much won over Congress. So those stocks I think are sells, especially ahead of what could be decent job growth announced on Friday.

At the time of publication, Cramer was long ABT and CSCO.

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