Playing the Bounce

Why was that positive? Because our issues are not keeping as many companies afloat as possible, our issues are allowing the strongest companies to emerge that can make the most money. I think it is great that ING and BNP got bailed, but it does not inspire me to own them. I think it is terrific that we might have another stimulus, but it does not inspire me to buy retailers.

These are all about the same thing: making it so we don't have minus 4 GDP and big unemployment.

Here is what they do: They allow us to have a big oversold bounce that encompasses everything except the companies that report and if you let spin the story nicely enough, they can rally too.

Beyond that, though, and you have to understand that until we see more Exelons and better earnings, you are going to be strictly playing the psychology and the bounce, both of which are now extremely positive but both of which will go away as we head higher.

As long as you know those are the rules, play on!

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

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