Bottom. It's When You Rally on Bad News

You get a bottom when you get really horrible news and a stock goes up on that news.

Take a look at Wells Fargo (WFC - commentary - Cramer's Take). That's what's happening. Right now. Bad home-equity loans, but contained to purchased, and we are rallying.

Citigroup (C - commentary - Cramer's Take), sought by Bank of America (BAC - commentary - Cramer's Take), and by Abu Dhabi? Bottom.

This is bottom action.

Fannie Mae (FNM - commentary - Cramer's Take) and Freddie Mac (FRE - commentary - Cramer's Take) solvency coming off the table.

Bottom.

Remember 1990. This is how the bottom was formed.

We had an almost identical Dow Jones pullback as we had in 1990 off this crisis. We have had major banks go down. We will still have failures, but they will, belatedly, cause fed funds rates to go down and the discount window taken to the short rates.

That's what this really is about.

The proprietary oscillator never lies.

We were too oversold.

And now we rally on bad news.

Bottom.

At the time of publication, Cramer was long Citigroup.

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