Dragged Into Buying Something

Everything's going the way of 50 basis points. This one's now become baked in. Doesn't mean if we get one we will go up.

It does mean that this is the fundament behind the rally, and it is like a lot of other times when we got a bottom.

No one believes. No one believes in the homebuilder rally even though we see it happening in a Ryland (RYL - commentary - Cramer's Take), which is the best run. Nobody believes retail even though we are hearing better things from McDonald's (MCD - commentary - Cramer's Take) and from Phillips-Van Heusen (PVH - commentary - Cramer's Take).

Nobody believes the possibility of the liquidity crunch ending, but that's what the rally in Countrywide (CFC - commentary - Cramer's Take) and Ambak (ABK - commentary - Cramer's Take) and MBIA (MBI - commentary - Cramer's Take) and AIG (AIG - commentary - Cramer's Take) is saying.

Nobody believes that Citigroup (C - commentary - Cramer's Take) can turn, but its stock is telling you that move is for real, too.

So are the commodities. They are seeing a loose Fed, from gold -- here goes Yamana (AUY - commentary - Cramer's Take) again -- to copper to ag and solar -- all oil derivatives, which also have stopped going down and which are creating bargains because refinery margins seem to be widening -- thanks Valero (VLO - commentary - Cramer's Take) and Occidental (OXY - commentary - Cramer's Take). Or how about AT&T (T - commentary - Cramer's Take) and Verizon (VZ - commentary - Cramer's Take), which are rallying because there isn't a real slowdown, but if there is, there will be better times ahead?

Heck, even Sears (SHLD - commentary - Cramer's Take) and General Motors (GM - commentary - Cramer's Take) are rallying. The latter seems like it is breaking out. Black & Decker (BDK - commentary - Cramer's Take) rallied off the low despite horrible guidance!

Remember the areas that we began to hear about "economic sensitivity." It's almost as if what has happened here is we decided we were in a recession and that we were going to lose some institutions, and the Fed says it won't let it happen, so we are being dragged kicking and screaming into buying something.

And that, too, is how bottoms are created.

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At the time of publication, Cramer was long Citigroup, McDonald's and Sears Holdings.

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. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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