Sorry, Bears, We Have Already Seen the Bottom

The bottom. What does it mean? It means that every time we get a big decline, you have to buy it, because we are not going to take out the July 15 low.

What caused this selloff: high oil and low housing prices. I now think we are range-bound in oil, and I think that housing prices are bottoming, because the worst-hit areas have bottomed -- this is just empirical data coming from the excellent real estate work I read every day on Seeking Alpha, which has done a terrific job at this.

The financials? Merrill Lynch (MER - commentary - Cramer's Take) showed that you can get out of the bad paper without going out of business. Wachovia (WB - commentary - Cramer's Take) will show us how to split into good and bad banks, a la Mellon in the 1990s. Citigroup (C - commentary - Cramer's Take) will make it. The housing legislation played right into the hands of Bank of America (BAC - commentary - Cramer's Take) and Wells Fargo (WFC - commentary - Cramer's Take) and gives them a way to offload their bad loans to the FHA. Fannie Mae (FNM - commentary - Cramer's Take) and Freddie Mac (FRE - commentary - Cramer's Take) will be saved.

I am finding disbelief that the July 15 selloff marked the bottom. Fifty percent of the people are bears, 30% bulls.

Sorry.

Again, a bottom is not a new bull market. A bottom is what we won't take out.

I think we won't take out the July 15 low.

That's what I am calling.

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

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