Passing on Flash

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As close readers know, we are pushing on into the cyclicals here as a bet that the Fed is done tightening and the multiples people pay for earnings will soon expand. We are not being aggressive because we know that we are headed into preannouncement season and a lot of the cyclicals we follow are still struggling to make their quarters.

But at this point in the economic cycle that is to be expected and is somewhat in the stocks. Take a look at that cyclical, Whirlpool (WHR:NYSE - news - boards). It blows up big-time and the stock only goes down one-half. Any good news and this stock is at 45.

So we pick at the papers. We have been buying International Paper (IP:NYSE - news - boards) and Mead (MEA:NYSE - news - boards). Neither is having a good quarter, but we think those iffy earnings are in the stocks. And now we are starting with a little United Technologies (UTX:NYSE - news - boards), a well-run Dow stock with good leverage to aerospace, defense and construction. That suits us fine. We will buy it down on a scale, take advantage of the weakness. Again, not a big bet. I am taking off tomorrow and Friday and am just leaving instructions to "build down unaggressively."

In these markets, these are the kinds of names I want to be involved in. Not a lot of flash. Not a lot of upside. Less downside. Perfecto.

Random musings: Taking some Broadcom (BRCM:Nasdaq - news - boards) on this Intel (INTC:Nasdaq - news - boards) lawsuit. Like 'em both.

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James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long International Paper, United Technologies, Mead, Intel and Broadcom. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at James J. Cramer .