Jim Cramer's Best Blogs

Here's another view of things, though, that might be a more realistic way of looking at these stocks: There are no bids, it is the summer and the hedge funds are caught in these names. They are still liquidating their commodity values and they don't know how else to alleviate the pain.

I know, I have been there. That's what makes you sell down 5.

Because you fear the next down 5, even though you had the down 5 the other day.

Just herd instinct and a sense that the downside will never end.

At the time of publication, Cramer was long Deere and Freeport-McMoRan.

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The Next Bull Markets

Originally published on Tuesday, Aug. 5, at 10:28 a.m. EDT

There's always a bull market somewhere, and now the bull market is with all of the companies that are big users of oil that have very little economic sensitivity, because people are convinced that there is a worldwide collapse in earnings. The tough thing about this switch is that the real bulls are the overstretched valuations: Pepsi (PEP Quote), Colgate (CL Quote), Procter & Gamble (PG Quote), Kimberly-Clark (KMB Quote), General Mills (GIS Quote), Kellogg (K Quote).

However, just like the oil and gas stocks are forecasting dramatic declines that will do much more than crimp earnings, you have to believe that all of the estimates for these consumer staples are way too low. That's what I would bet with a KMB and a PG, especially as they have taken pricing. So has Kraft (KFT Quote) and General Mills. Heinz (HNZ Quote), too. Campbell's (CPB Quote) is doing it now. These seem to be headed higher because of those. Pepsi, when it takes a lot of pricing this quarter, could be the best of all. (I am buying it.) Don't forget Avon (AVP Quote) and Tupperware (TUP Quote), both with great quarters; the latter is a huge beneficiary of the nat gas collapse. The drugs don't benefit from oil and they need a weak dollar, which isn't in the cards for the moment. But for those who think that the decline in commodities is signaling total collapse of the economies, then these will work. Schering-Plough (SGP Quote)? I don't know ... I like Gilead (GILD Quote), which is on fire. Abbott (ABT Quote) had a great quarter. Bard (BCR Quote) and Becton (BDX Quote)? The latter, thought of as a resin play, seems particularly good for the moment.