Brace Yourself as We Test the Floor

Maybe the market can't handle the wholesale destruction of an important sector. That's how it seemed to play out today with the beatdown that energy suffered. Or maybe we are just too nervous about employment, but either way it looks like the newfound consensus that we have bottomed will be tested instantly, as the Rev said.

We did a little selling in Action Alerts PLUS in prep for that, because I believe that as we go down toward Dow 7350 -- as I said earlier today -- it will not be breached.

Today we got some weird redemption from some big commodity houses, and you can see those stocks drenched in red. When you combine that selling with the actual commodity declines and the catastrophic decline to the devil's price of 666 for the Baltic Dry Freight Index, you can see why the nat gas/drilling/oil complex blew up, just blew up, obliterating anyone near it.

Today was not a discouraging day. It was simply a reminder that we shouldn't have gone up on bad news, although it was refreshing not to get crushed on bad news, which there was a slew of.

We got big rate cuts, we got through the retail numbers, now we have just one more big bad event.

I say get ready as we go down through Dow 8000 or SPX 800, to buy in increments because I do not believe, again, that Dow 7350, intraday low, gets taken out.

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Know What You Own: Cramer mentions the Baltic Dry Freight Index. Publicly traded names in the shipping industry include Frontline (FRO - commentary - Cramer's Take), Tidewater (TDW - commentary - Cramer's Take), Kirby (KEX - commentary - Cramer's Take), Seacor Holdings (CKH - commentary - Cramer's Take), Teekay (TK - commentary - Cramer's Take), Alexander Baldwin (AXB - commentary - Cramer's Take) and Nordic American (NAT - commentary - Cramer's Take).

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