So-Called Revelations Re-Establish the Bear

How did people think this saga with General Motors (GM - commentary - Cramer's Take)was going to end, with Rick Wagoner receiving the Congressional Medal of Car Building?

Did anyone think that the company was actually going to turn around? Did anyone want Wagoner's GM to continue to get money? Did anyone think he was actually doing a good job?

How about the bad news out of the G-20? No stimulus. Did anyone really think that the Europeans were going to do more stimulus than they have, given that all they really think about is Weimar inflation because that was the antecedent to the Third Reich? Who expects them to deliver anything good?

Or Timothy Geithner's shocking announcement on national TV that banks would need more money? Holy cow! That some would need substantial amounts of money? Stop Trading!

All three of these "revelations" are now conspiring to wipe out anything that we have gained in the last three weeks, or are at least they're looking like they will. All three are about the reestablishment of the bear and the decision by sellers to declare what has occurred since March 6 to be a bear market rally.

When considered with the no-doubt-shockingly-bad employment number on Friday, it is easy to see that it was all a dream. Except if you took something off the table you did make a ton of money.

I say nonsense: We were the most overbought we have been in years and years. The idea of being "due" was fanciful. We are way over due.

And now the selloff is happening. I suspect we could lop off some of the last of the gains. But back to March 6? That would take an awful lot of failure and bad earnings, particularly when the earnings estimates are very low for so many companies.

Disaster?

No. Business as usual as undue euphoria gives way to undue pessimism.

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

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Know What You Own: Cramer mentioned General Motors. Related automakers are Ford (F - commentary - Cramer's Take), Toyota (TM - commentary - Cramer's Take), Honda (HMC - commentary - Cramer's Take), Nissan (NSANY - commentary - Cramer's Take) and Daimler (DAI - commentary - Cramer's Take).

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