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RealMoney.com: Market Analysis
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Let the Programs Rock the Market

By Jim Cramer
RealMoney.com Columnist

1/20/2006 1:53 PM EST
Click here for more stories by Jim Cramer
 
 Market Analysis
  • Poor fundamentals, in the form of earnings, are rocking the usual movements of options expiration.
  • Having too many bulls and being overbought are making things really ugly.
  • Let the sell programs shoot stocks down and then buy drillers.



We are seeing the downside of an expiration, when real fundamentals interrupt the now natural movements that we had come to expect. Nobody thought that Citigroup (C - commentary - Cramer's Take) and General Electric (GE - commentary - Cramer's Take) and Motorola (MOT - commentary - Cramer's Take) would all crack up at the same time. Citigroup was more likely to be pinned at $50, and GE at $35. Motorola looked like $25. I guess they can't all be like Altria (MO - commentary - Cramer's Take), deliciously pinned at $75 multiple times now.

When we have fundamentals rock expiration, you can get real havoc, which is what we have today. If you tack on the too-many-bulls signal -- Investors Intelligence flashed us 57%, always dangerous, and you still haven't worked off the overbought nature -- you get the ugliness that we are seeing.

I like the fact, though, that my email box is flooded with people screaming at me for "incinerating" them in Intel (INTC - commentary - Cramer's Take) or burning them in worthless Internet stocks. I guess they forgot I told people I didn't like Intel (look it up using my scoreboard) and haven't beaten the drum for Google (GOOG - commentary - Cramer's Take) in 50 points. How dare I.

Remember, though, why I read the uncomplimentary emails: as a gauge of how angry people are about losing money. We aren't there yet, frankly, because I haven't begun to get mobbed by the people who are going to blame me for Broadcom (BRCM - commentary - Cramer's Take) and Marvell (MRVL - commentary - Cramer's Take), the two greatest wins in the tech world, although I have already heard back in anger about Qualcomm (QCOM - commentary - Cramer's Take).

I say, this is a day you have to let the programs rock the market. You may even have to let them rock the opening on Monday. And then you can buy the companies that reported better than expected earnings, which, alas, comes down to Schlumberger (SLB - commentary - Cramer's Take) and its cohort, which is -- angry readers take note -- the only place I said to be anyway before the selloff got nasty.

Here's your chance to pick the stock you'd like me to feature on my radio show Jan. 26:
AMD
Verizon
Centex
Nokia
D.R. Horton
McDonald's

REMEMBER to listen in on Thurday for my take on the stock that wins this poll!







 RELATED STORIES

Market Analysis
Leave Battleground for What Works
1/20/2006 8:36 AM EST
The oil drillers are unquestionably in bull-market mode when we can't tell whether tech was good or bad.

Market Analysis
This Shakeout Is a Painful Cure
1/18/2006 3:26 PM EST
We're overbought with too many bulls, but that shouldn't last long now.

Market Analysis
Japan's Panic Means It's Bargain Time
1/18/2006 2:29 PM EST
The country's market is solid, and its companies are quality exporters. Quit worrying and start buying.



General Electric owns CNBC, for which Cramer is a featured commentator.

At the time of publication, Cramer was long Motorola, Altria, Intel and Qualcomm.

Jim Cramer is a director and co-founder 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 ActionAlertsPLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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