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Looking for a Thesis; Day 1 of Big Change: Cramer's Best Blogs

So, to put it all together, we have lost the housing thesis, and we have some potential replacements, but they aren't yet able to take up the slack. Meanwhile, the consumer-packaged-goods stocks have given you a dead-cat bounce before what I fear will be still one more leg down.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.

Day 1 of the Big Change

Posted at 12:54 p.m. EDT on Thursday, June 20

The market sometimes is not as dumb as it can look.

Today we are witnessing a group of stocks performing better than they have in ages, maybe better, relative to the market any time in the last six years.

I am talking about the regional banks like BB&T (BBT), Huntington Bank (HBAN), M&T Bank (MTB) and Zions (ZION). I am talking about bedrock local banks, the ones that have been a huge drag, ones that are riddling peoples' portfolios from the old days. Take a First Horizon (FHN). That stock was at $37 a few years ago. Now it is at $11. Huntington went $24 down to $7. Or KeyCorp (KEY), at $39 goes to $10.

And now they are going up? How can that be? With rates going higher?

You bet, and this move makes all the sense in the world. That's what's amazing to me. In the chaos that was the aftermath of the Fed, people figured out that now, at last, these banks and hundreds of others like them are going to be allowed to make the money that the Fed denied them for so long.

Banks, which are part of the financial cohort that represents fully 16% of the S&P, second after tech, have been a huge drag on the index. That's because banks make money in three ways: fees for services, loans and certificate of deposits. Now, fees have been terrific, especially when they keep getting raised all the time, as we know all too well. But loans and CDs? They have been horrendous. There hasn't been enough profit margin in loans and there's not been enough spread between what a bank pays you for your deposits and where it can invest those dollars.

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