Use This Fulcrum to Pry Yourself Out of Trouble

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Friday is looking more and more fulcrum-like, in that the bad news got compressed into the market ahead of the actual news breaking, resulting in a market that can finally rally.

For some, the rally can be irksome. I have to admit that when I read Bill Fleckenstein, who has been right as rain, it must be so frustrating to see Dell (DELL - commentary - Cramer's Take) and Microsoft (MSFT - commentary - Cramer's Take) rally on the bad Intel (INTC - commentary - Cramer's Take) news. I mean, that's a little preposterous when you think about it.

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But the reality is that on fulcrum days, when it looks like the world is coming to an end, it probably already has -- at least for a while -- which allows the bizarre to happen.

The important thing for so many of you out there is to recognize that the main trend is very much in place: defensive stocks, high-quality mall-based retailers, defense stocks, nondrug health care and regional banks. What a terrific opportunity to retool and bolt from the telco-tech detritus that shows no signs of getting better. What a great time to get into the groups that are working, as they've been knocked down to appropriate levels. (I know I put some money to work this morning in my Action Alerts PLUS Portfolio.)

Some of these weak dollar plays really intrigue, stuff like 4%-yielder Heinz (HNZ - commentary - Cramer's Take), which reports this week. The snapback in retailers Wal-Mart (WMT - commentary - Cramer's Take) and Lowe's (LOW - commentary - Cramer's Take) also seems logical, given the better employment reports and continued decline in oil, which saps discretionary income.

All in all, a decent post-fulcrum picture for the bulls, allowing a terrific opportunity to get out of the soon-to-be-trashed-again sectors.

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James J. 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 Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Click here to get Cramer's book, "Confessions of a Street Addict."