Charts vs. Fundamentals

I am all for using oscillators and market sentiment to help temper the severe decree of earnings. But right now, those are off the charts negative, meaning way too bullish, no doubt in many ways because the charts are so bullish. It can't be because of the values. They aren't cheap when you do the work I do because the estimates -- the forward estimates -- are way too high .That's how you can get a bank group ruined by Meredith Whitney and nobody can defend it. I mean, does anyone think this is going to be the LAST BAD QUARTER for Citigroup (C - commentary - Cramer's Take)?

So, I am stuck. The stocks I like -- Johnson & Johnson (JNJ - commentary - Cramer's Take), Unilever (UN - commentary - Cramer's Take), General Mills (GIS - commentary - Cramer's Take) -- are now hated and the charts are bad. But those have the least exposure to bad earnings in 2009 as the high-commodity hedges work off and the prices of raw stuff plummets. The expectations of a GIS, with a 3% yield and great management, are so tempered that when we see grain prices in half in six months year over year, and oil prices down by 60% year over year, but sales up double digits, well, you tell me whether you want to own that or a company where sales are cut in half and margins are being slashed. Those, though, have the good charts.

When estimates are too high across the board and enthusiasm is too high across the board, I sell stocks across the board, with at least as much flexibility as I can (I get restricted on many names for Action Alerts PLUS, but I tell viewers what I would be doing.

I am telling them to lighten up.

Random musings: Yes, I wish that I had waited until Nordic American Tanker (NAT - commentary - Cramer's Take) issued shares to re-recommend it. But I would buy it. ... The REITs are so closed out of the loan market that they are diluting the heck out of their stocks with equity. Don't like that group at all! ... I continue to hear troubling rumbles from Fortress Investment Group (FIG - commentary - Cramer's Take), where we saw some good stuff the other day on the flagship site. ... I like the seriousness of the Bank of England with its half-point cut. But I also worry about oil spiking back up on widened Gaza and these retail earnings are a nightmare. Check out J.Crew (JCG - commentary - Cramer's Take)!

At the time of publication, Cramer was long JPMorgan, Wells Fargo, General Mills, Johnson & Johnson, Wal-Mart, Freeport-McMoRan and Unilever.

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Jim Cramer is co-founder and chairman of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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