Cramer: Good News Within the Gloom

We are so gloomy that we can't even see positives when they come: The mortgage rates at 5% are producing massive refinancing -- up 48% week over week, which is astounding. That also means people are coming off the sidelines to take advantage of the biggest drop in home prices ever. We know that gasoline is going to $1.50. I keep thinking that these figures are just not reflected in the stock market because the bond market is so bad, but there's even been some upward lift in corporate bonds.

I am not saying, "Something great is happening!"

I am saying that the hand isn't as bad as it was for the consumer two months ago -- even as we all think the consumer is going to collapse in 2009.

I would remind people that the banks -- the Wells Fargos (WFC Quote) and the JPMorgans (JPM Quote) and the U.S. Bancorps (USB Quote) (which goes to its must-own date next week if you want that dividend I highlighted last night on "Mad Money" using some of the great work from Dave Peltier's excellent Dividend Stock Adviser newsletter) -- are great ways to play it, as are down-and-out retailers. Nobody wants to play either right now, of course, but that doesn't mean you can't make money in them.

Funny, but normally you would be buying General Motors (GM Quote) and Ford (F Quote) on this but I would avoid those two like the plague. You know, there was another time when I would actually think about buying Sirius-XM (SIRI Quote), but that's one of those companies that will be issuing equity from now to kingdom come. Like so many other companies, Sirius issued gigantic amount of debt that must be paid down before anyone can own the equity. And while that company never had the cash flow to pay off that debt, why did those that did have the cash flow not do it more?

Anyway, I am reiterating that the clean balance sheet restaurants and Wal-Mart (WMT Quote) will be big winners in this environment, as will CVS (CVS Quote) when losers like Rite Aid(RAD Quote) falter.

No, don't stop despairing. There are many danger zones out there, particularly commercial real estate, and private equity debacles lie ahead.

But be aware that when something good happens, nobody cares anymore.

Kind of telling.

Random musings: : When I speak of what hedge funds are doing right, I am talking about trades like Doug Kass constantly talked about on RealMoney Silver, such as the shorting of the coal stocks -- and endless profit-center, which he just covered ! Congratz, Doug, and thanks for sharing this million dollar idea with readers!

Seeking Alpha attacking me for being negative on ProUltra ETFs. What's wrong with being empirical and looking at Oberg's stuff on it (parts 1 and 2 )?... People still fascinated by solar, as I keep getting calls on companies like JA Solar (JASO Quote)in my Lightning Round. With oil going down you can forget about them... Positive piece in The Wall Street Journal about the potential of natural gas in a world where carbon taxes loom. I think that the natural gas companies were betting on natural-gas-powered cars -- the Pickens Plan -- which was a total bust.

At the time of publication, Cramer was long WMT and JPM.