Don't Buy the Move in Drugs and Food Stocks

Taking any cue from stocks day to day in this market -- as opposed to week to week -- has become an idiot's delight. The overall trend can be described as worldwide depression sprinkled with either short-covering bouncebacks or hopes, repeatedly faded -- like the futures -- on government actions.

But I am finding this move today in some of the drug stocks and food stocks very powerful and somewhat compelling given my view that the economy is just awful. I am seeing Schering-Plough (SGP Quote - Cramer on SGP - Stock Picks) knocked back to Vytorin-gives-you-cancer levels, yet I don't sense a new series of articles on it. Procter (PG Quote - Cramer on PG - Stock Picks) and Pepsi (PEP Quote - Cramer on PEP - Stock Picks) are down, and I just bought some Johnson & Johnson (JNJ Quote - Cramer on JNJ - Stock Picks) after a big pullback.

Clearly people -- or at least some people -- are betting that the worst is over.

I think that's nonsense. I think the hedge funds oversold certain stocks and people were shooting against the hedgies in a time-honored fashion.

My take? When we get rate cuts, people will sell these stocks, and that's what we are seeing, some pre-selling ahead of rate cuts next week. I say find one you like and get ready to buy it.

Random musings: Interesting piece by Tony Crescenzi about rate cut possibilities. I think they are a given and Ben -- totally irrelevant and wrong -- will act because of our trading partners. He's still worried about inflation. Maybe also about his job. He should be.

At the time of publication, Cramer was long Johnson & Johnson, Pepsi and Procter & Gamble.