Wait Until We Get Oversold Again

Look, it's a first-class beat-down. Ugly as all get out. But could it not be foreseen? Did anyone doubt the artificial nature of the last two days of the run? We deserved to be up for filling the Citigroup (C - commentary - Cramer's Take) black hole and because we were so oversold.

But did we deserve the biggest rally in 30 years? Did we deserve a 20% move?

I don't think so.

There is no doubt that this market is awful. There is no doubt that the rally we had last week couldn't be sustained.

But this selloff could run its course higher than the last selloff because of potential ECB/BOE cuts and more cuts from the Chinese as everyone is well aware that things are falling apart at the seams.

Plus, while deflation is all around us and unemployment is going to be very tough, we are getting to the point where gasoline is so low that we can see consumers feeling better than they did last time down here.

Have things gotten better than the last time we revisited below 8000 on the Dow? I think so, because at that point I thought Citigroup could go under. I thought that GM (GM - commentary - Cramer's Take) and Ford (F - commentary - Cramer's Take) could go under. Citigroup's got a plan now, and GM and Ford may have a plan when they come to Congress.

Wait until we get oversold again. I think that will happen soon. But I think that the levels last seen do hold.

Oh, and who knows? Once again it feels like we have more hedge fund redemptions.

Welcome back from vacation. Everyone's gloomy. Be careful to be more gloomy than everyone else.

At the time of publication, Cramer had no positions in stocks mentioned in this post. Know What You Own: Other stocks related to the ones mentioned above are Toyota Motor (TM - commentary - Cramer's Take), Nissan (NSANY - commentary - Cramer's Take), Bank of America (BAC - commentary - Cramer's Take) and American Express (AXP - commentary - Cramer's Take).

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