This 'Rotation' Is Running Out of Steam

When have they overstepped? When have we sold the consumer stocks too much and bought the oils too much? Hmmm.

Watch Exxon (XOM - commentary - Cramer's Take). That led us up. Don't you find it interesting that it's not leading us anymore? That it is going down?

Elsewhere, Doug Kass is pooh-poohing these soft-goods stocks. I think, as usual, you do a mix. You find your favorite soft-goods stock and you buy it slowly on the way down.

But you find your favorite tech that hasn't moved much -- we like Qualcomm (QCOM - commentary - Cramer's Take) and Cisco (CSCO - commentary - Cramer's Take) for Action Alerts PLUS, plus Research In Motion's (RIMM - commentary - Cramer's Take) right because of new products -- and you buy a mortgage play -- Wells Fargo (WFC - commentary - Cramer's Take)? -- and you can buy a down-and-dirty retailer that you have faith in, but hold your nose. I can get with Best Buy (BBY - commentary - Cramer's Take), and I like the yield support of JC Penney (JCP - commentary - Cramer's Take). You can buy deep-in-the-money calls for MasterCard (MA - commentary - Cramer's Take) -- remember, it did report a fantastic number.

Still, this is a tough moment. You have momentum stocks like MasterCard roaring, you have National Oilwell (NOV - commentary - Cramer's Take) -- the hedge fund stock -- ramping. You have phenomenal moves in the companies that are perceived to hold mortgage-related assets like Hartford Financial (HIG - commentary - Cramer's Take) and Lincoln National (LNC - commentary - Cramer's Take).

But you are running a risk that the rotation has produced vastly overbought stocks that can, of course, get still more overbought totally on animal spirits. For example, when I reviewed tech last night on "Mad Money," I said that I could find only ONE stock with 2009 visibility: Hewlett-Packard (HPQ - commentary - Cramer's Take).

Bottom line: The rising tide is lifting all cyclical boats. The hedge funds are done selling. But, I key on Exxon, ultimately, and that's saying, "Don't overstay your welcome."

Random musings: I reiterate that Anadarko Pete (APC - commentary - Cramer's Take) remains the cheapest nat gas stock. ... I think that JPMorgan (JPM - commentary - Cramer's Take) is not participating, and that's incorrect -- it has a big portfolio of mortgages that can be refinanced because they are on the books, not securitized. ... How ironic is the situation at outfits like Fortress (FIG - commentary - Cramer's Take), which we learned on the flagship site doesn't seem to have the money to participate in a rally that seems made for its style! ... You should be selling some common right here to lock in some Monsanto (MON - commentary - Cramer's Take).

At the time of publication, Cramer was long JPMorgan, Hewlett-Packard, Qualcomm, Cisco and Wells Fargo.

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