Wait for the Rumors to Stop Working

Remember 1990. Back then, it was so easy to rumor down a stock. We will not know when the all-clear in this market is sounded; we'll only know when the rumors don't work. And we aren't there yet.

I heard, for example, that those who have more than $100,000 in Countrywide's (CFC - commentary - Cramer's Take) bank are pulling out. I didn't even know it had a lot of that kind of deposit.

I also am seeing raids on H&R Block (HRB - commentary - Cramer's Take), CIT (CIT - commentary - Cramer's Take) and on IndyMac (IMB - commentary - Cramer's Take). These kinds of raids are just broker-to-broker, whispers of things about to happen if the Fed doesn't move.

One day these stocks will be hit with rumors but they won't go down. Until then, expect more volatility, more downside and more Fed cuts.

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

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.