The Market Says the Fed Won't Help

Is the mind-set that the Fed is too late no matter what? I know that Inverness Medical (IMA - commentary - Cramer's Take) (one of my ActionAlerts PLUS names) and McKesson (MCK - commentary - Cramer's Take) had great quarters. But you would not get these jumps on these great quarters if it weren't for the belief that Armageddon is still lurking from mortgages.

These stocks are going up because of a belief that Friday's employment number will be weak and a sense there is nothing that can be done to brake the coming slowdown.

Contrast that with the endless selling of Terex (TEX - commentary - Cramer's Take) and Caterpillar (CAT - commentary - Cramer's Take), which would be stabilizing if we thought the Fed was potent. And the fact that the JCPenney (JCP - commentary - Cramer's Take)/Macy's (M - commentary - Cramer's Take)/Sears Holdings (SHLD - commentary - Cramer's Take) complex can't rally to save its life -- although I want to take the other side of that trade when it comes to Target (TGT - commentary - Cramer's Take), Nordstrom (JWN - commentary - Cramer's Take) and Polo Ralph Lauren (RL - commentary - Cramer's Take).

I see the reaction to McKesson, and I want to reach out and buy some CVS (CVS - commentary - Cramer's Take) and Medco (MHS - commentary - Cramer's Take), which are better. But most importantly, I see McKesson/Inverness and I say, oh boy, the Fed's in denial still about how bad things are and is still one foot in the inflation-fighter camp.

It is deflation we are fighting. Not inflation.

Inverness and McKesson prove that point more than anything.

At the time of publication, Cramer was long Caterpillar, CVS, Inverness and Sears Holdings.

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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.

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