Still Bullish on Fed Rate Cut

Just enough damage in mortgages to keep the Fed in play. That's how I felt today as I looked at the market going up in the face of what I think will be a fairly strong employment number because in the end the layoffs are still concentrated in only one area of the economy: housing.

That means you can still have everything rally but the blast zone -- the financials.

What makes me so confident besides my innate belief that resets and housing are going to kill some financials and cause a bailout? The twin killers of bonds and gold. The gold breakout is the best symbol yet of the coming cuts. You just don't get those stocks moving unless the goal is to reflate, which is exactly what I think the goal has become.

Still, the crosscurrents are so great that I could see another selloff on the "wrong" number tomorrow. Part of that is because Hovnanian (HOV - commentary - Cramer's Take), which reported an awful number, is still not going out of business, and until I see some real homebuilder annihilation, I am concerned that the Bill Pooles will hold sway on this Fed.

I am confident of some homebuilder collapses and banking problems, so, alas, and ironically, I remain bullish that the Fed will help. If it doesn't, tech, oil, ag, health care and minerals will stay in bull market mode and make us some moolah.

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

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