This group, to me, is in trouble. It's ridden the refinance and housing boom for ages. Those are over. These stocks will not be bailed out by an improving Europe or Asia. They will only be hurt by Washington when the summer's over.
At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.
The Piper Is Being Paid Posted at 11:57 a.m. EDT on Thursday, Aug. 15 You don't want rates to climb at the same time earnings are coming down. You want rates to climb because earnings are going higher. You don't want the consumer spending less and the 10-year note going to 3%. You want consumers spending more and the 10-year going to 3%. So what we have right now is a combination that should, unfortunately, if you are a bull, take us down to let's say 1643 on the S&P 500, give or take a point (thank you Matt Horween for your levels.) It's too difficult to shrug off both Cisco (CSCO - Get Report) and Wal-Mart (WMT - Get Report) on the same day. I can excuse Cisco, as I did earlier, by simply pointing out that there really is no big guide-down and plenty was robust. Wal-Mart's tougher, especially in light of Macy's (M) miss yesterday. You can't have the biggest department store miss and the largest retailer in the world miss and not think that the boogeymen of higher taxes, higher gasoline prices, unemployment insurance, rising rates, furloughs and the sequester aren't at last dinging the strong consumer. We know the housing stocks have been clocked despite incredible -- and ridiculously high -- homebuilder sentiment, the strongest since 2005. Boy is that worrisome. We also know that auto sales simply can't be as robust as they have been with higher rates and lower disposable income. Where is the leadership going to come from? I can't find any to speak of. Very worrisome. The piper's being paid.
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
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV