You start the rally too early, you cause more heartache and disappointment. I had hoped we could get off the roller coaster that has prevailed since 2000, where the only way to "cure" the overbought condition where there are too many bulls is to have a short, sharp shakeout. But that's what we have once again.
I, for one, like this session more than Tuesday's because at least we have some hope that oil inventories can bloat and that group can come down a tad. We are surely in zero-sum territory for energy when we get up here, and it makes the rest of the market -- including the growth stocks -- truly a pain in the neck to own.
Plus, we have to like what we see happening in tech, the bifurcation of PC vs. communications, that allowed Broadcom (BRCM - commentary - Cramer's Take) and Marvell (MRVL - commentary - Cramer's Take) to bounce nicely -- hope you did that.
Alas, though, because the rally sprang at 2 p.m., we now are bringing out more sellers, which is wont to happen when you are overbought. I, for one, haven't started picking at anything yet for Action Alerts PLUS, and was able to use this morning's strength to lighten up on some holdings.
Another percentage point down, though, and it will be time to start picking.
P.S. Will you be there when Cramer makes his next move?
Strong brands and companies with vast market exposure can help bolster your portfolio. Jim was able to lock in a 64% gain by buying Ingersoll-Rand at $13 and selling at $22.50. Action Alerts PLUS members were the first to see these moves. Were you among them? Get Free Access Today!
Market Analysis Japan's Panic Means It's Bargain Time 1/18/2006 2:29 PM EST The country's market is solid, and its companies are quality exporters. Quit worrying and start buying.
Market Analysis Market Gives Bulls Reason to Hope 1/18/2006 11:27 AM EST Mornings like this, where we just aren't taken apart when we should be, justify that posture.
Market Analysis The Fed Needs to Look at Earnings 1/18/2006 9:38 AM EST We've now got several signals that it's done -- or needs to be -- raising rates.
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 ActionAlertsPLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest 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.TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.
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