This column by Jim Cramer appeared earlier Monday on RealMoney . Click here for a free trial, and enjoy incisive commentary all day, every day.
The charts show no faith. Doesn't matter the industry, health care, tech, banks or defense companies. They all look terrible. Just horrible. Not saying, therefore, that everything must go down. Am saying that it is really, really ugly almost everywhere you look.
Take the banks. Many are breaking down to or below levels where they did big financings, some well below, like Wells Fargo (WFC), BB&T (BBT), JPMorgan (JPM) and Bank of America (BAC) -- all pretty decent banks. Others have good yield but the yield doesn't seem to stop the decline one bit as we can see from People's United Financial (PBCT) or Astoria (AD), or, worst of all, Hudson City (HCBK), which has a 5% yield and no problem at all paying it. The charts seem to think that it isn't good for it, though, because utilities of similar quality and less yield are going higher.
Or how about the incredible shrinking multiple of tech? Google's (GOOG) at 19 times earnings. Intel (INTC) and Hewlett-Packard (HPQ) are at 9 times earnings, the former is supposed to be peaking in margins and is regarded as panicking while HPQ is clearly rudderless. Forget Seagate (STX) and Western Digital (WDC); I am beginning to think there is no price people will pay for them.Lots of high quality medicals seem to have lost all support. MedcoHealth (MHS), Gilead (GILD), Express Scripts (ESRX), Quest Diagnostics (DGX), these are all shrinking beyond recognition. So much for what to buy in a re-recession, my term for double-dip. The defense stocks are amazingly bleak and trade as if we aren't just pulling out of Iraq but also of Afghanistan. Raytheon's (RTN) been murdered here. Lockheed (LMT), L-3 (LLL) and Northrop Grumman (NOC) can't seem to be given away. Perhaps the worst is retail where even after we got some decent earnings last week from Target (TGT), Wal-Mart (WMT) and Urban Outfitters (URBN), the declines for stocks like the office products stores, Staples (SPLS), Office Depot (ODP) and OfficeMax (OMX) show no signs of abating. It is impossible to look at the teen retailers like Hot Topic (HOTT), Aeropostale (ARO) and American Eagle (AEO) without thinking terminal thoughts. J.C. Penney (JCP), Chico's (CHS) and Charming Shoppes (CHRS) are disasters as is Gap (GPS).
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV