Looking Beyond Tech

Click here for the latest from James J. Cramer.

First tech, then the rest of the market? Is that how the bottom gets put in? Makes sense to me. We liked the action away from tech today as we saw money go into many of the extremely oversold industrial stocks.

I know that many of you only look at tech stocks. As a generalist, I look at everything. I thought that the ability of the rest of the market to rally even as tech went down showed me that we were not just in short-squeeze mode (many of the industrial stocks aren't shorted at all).

Instead, it seems like the selling in the tech stocks was natural profit-taking and the buying in the industrial, health care and banks tells me that there is: 1) plenty of money around to buy, and, 2) lots of tax-loss selling that has now taken place.

It isn't always done with tech. Today it was done with Procter & Gamble (PG:NYSE - news - boards) and Colgate (CL:NYSE - news - boards) and Chase (CMB:NYSE - news - boards) and PNC Financial (PNC:NYSE - news - boards). Nothing shabby about that!

---

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. 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 send comments on his column to James J. Cramer .