To Go Higher, Root for a Selloff

We don't want a rally. I am not kidding. We don't, if we are bullish, want a rally. We need to rest here and work these prices.

There are too many stocks that have blown through levels without enough buyers to sustain them and too little volume.

I am a huge believer in this market but this market has been all about people being too negative. It is all about retail staying out of the market.

As long as that continues, it goes higher. No sustained rally can be easy; it requires periodic pain and a sense that it is over.

I liked the fact that a lot of the bulls were already turning bearish after a 1.4% decline but I want to see a 2%-4% decline to recharge the darned tape.

Keep your fingers crossed, bulls, that we go down. We need to have the hedge funds rebuild their shorts. Don't believe me? How do you think Crox got to $88? The numbers? Nah, the shorts.

Crox (CROX - commentary - Cramer's Take)is a microcosm for the market, a good story getting higher -- valuation on good momentum and earnings, with plenty of disbelievers.

It's a blueprint for the rest of the market, including the Dow. But the blueprint is notbeing followed unless we go down here.

At the time of publication, Cramer had no positions in stocks mentioned.

ALL JIM CRAMER BLOG ENTRIES | POST A COMMENT | READ COMMENTS  

---

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 Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his 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.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.