Jim Cramer's Best Blogs

Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

• key stocks,
• the market's vote against Obama, and
• bearish spin.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.

---

The Key Stocks Again Drive the Market
Posted at 2:29 p.m. EST, Nov. 3, 2009

As always, if we get a turn in the hated stocks of the day, we get something explosive, which is why I endlessly key off of certain stocks.

Take Apple (AAPL). This stock hit $186 not that long ago as stops got taken out, ETFs it belongs to got forced down and we heard more negatives about the iPhone. And then boom, it shoots up 3. Google's (GOOG) rallied 8 points off its bottom.

In the meantime, Wells Fargo (WFC) and Goldman (GS) have turned up.

So, amazingly, in the span of an hour, the two wobbly legs -- tech and banks -- join oil going higher.

That's what's so difficult about the market. That's what's so curious about the piece I did today on the ease of being a bear -- the one where I tongue-in-cheek said you should just sell everything.

Suddenly we have a situation where the shorts are momentarily overrun and the longs have a chance to make money.

Now, again, I think that this market's crummy. But I have been quietly putting money to work in these dips, not because I expect a quick turn, but because I simply don't care about these daily commodity-like selloffs. I use them to pick at stocks that wouldn't be down if it weren't for the dollar/gold/oil conundrum.

The area I am digging deep on right now is tech, because now that I have read the Morgan Stanley analyst's report, I think it's dead wrong. Intel's (INTC) down 2½ dollars from when it reported. That makes no sense to downgrade now. Nvidia (NVDA)? How can that come off the list down here? Why did he like it to begin with? ON Semi (ONNN) is totally related to a turn in the economy, and that comes off the list? Its business is smoking. I am not buying this report.

But we see the fallacy of betting against the market as a whole and we see the problematic nature of relying on the gold/dollar/oil troika when we get a reversal in a couple of key stocks.

Literally, just a few stocks control this market. You only need to have a half-dozen on your screen to figure this stuff out: JPMorgan (JPM), GOOG, AAPL, GS, WFC, Chevron (CVX), Schlumberger (SLB) and Bank of America (BAC). Those really tell everything you need about what's happening and what's going to happen.

Man, is this market stupid.

At the time of publication, Cramer was long Bank of America, Goldman Sachs, Wells Fargo and Chevron.