The Market Overshoots Once Again

We go down too much, so now we go up too much. We have companies that are supposed to be doing poorly, or are even reporting not great numbers, like Sears Holdings (SHLD - commentary - Cramer's Take), that are ramping. It turns out, by the way, that Sears has a lot of credit lines -- the bears have been saying they didn't -- and a seemingly endless amount of capital to buy back stock. That's an ouch for the shorts who have pushed this stock down endlessly.

We have the drug stocks going higher, something that should have happened yesterday, but Pfizer (PFE - commentary - Cramer's Take) and Merck (MRK - commentary - Cramer's Take) and Schering-Plough (SGP - commentary - Cramer's Take) were all pushed down by the sell programs. We have the oils coming back, although I don't trust them to go up when oil's going down, but you know my rap on how important those stocks are to manipulate up if you want a rally.

And we have retail reacting as it should have yesterday -- the numbers were like General Electric's (GE - commentary - Cramer's Take), simply not as bad as we thought, so we get a rally there. Check out VF Corp. (VFC - commentary - Cramer's Take) if you want upside there with yield.

We know these markets overshoot. Unless we get negative news, we could probably make up a lot of yesterday's losses. I wish we wouldn't because of the gauntlet later in the week, but let's face it, stocks went down too much yesterday, particularly in the joke that the last 20 minutes of trading have become. I mean, if we can be up 200, why not 400?

Yeah, it is that mindless.

At the time of publication, Cramer was long General Electric.

Jim Cramer is a featured commentator for CNBC, which is owned by General Electric; as part of his contract, Cramer holds restricted shares in GE.

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