This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: A Turn Could Be Around the Corner

NEW YORK (Real Money) -- The rolling correction continues. We have seen some really powerful downward moves in some of the major industrials of late. They remind me of something that Byron Wien -- senior adviser at Blackstone, and by far my favorite market commentator -- said at the beginning of the year. He remarked that the S&P 500 would initially drop 10% in a worst-of-times situation, and then in a best-of-times situation it could rally 20%, heading perhaps to 2300 at the end of the year.

I point this out because Wien put out his monthly note Tuesday night, and it is very positive on the market -- but, in it, he does not directly address that he thought stocks would have that initial decline.

Yet, as I look over so many of the big industrials and many of the technology stocks, I see the market did have a pretty large correction already. Stocks such as General Electric (GE) and Boeing (BA) and United Technologies (UTX) are down huge from their highs. The cloud-computing stocks, despite their nascent rallies, are down much more than 10%.

Many of the drug stocks have been rocked.

Must Read: How Twitter's Blowout Quarter Changed My Mind

In fact, the advance has become narrower and narrower.

So, in this void, perhaps it is worth interpreting Wien thus: We have seen a huge correction within the market, and you now need to look for signs that it is ending.

On Tuesday I talked about the weakness in so many cycles: aerospace, farm, housing, transports, trucking, insurance. I could add retail and restaurants, excepting special situations, too.

The question I have is: Have the stocks in those cycles already adjusted to the weakness?

Let's take agriculture: last night I had Agco (AGCO) on "Mad Money." That's the third-largest agricultural-equipment maker. We all know that prices are down huge for grains. But Agco shares are down 16%. Isn't it right to ask whether the stock has factored that in?

Or take Boeing. This stock has had a relentless decline: It has lost 10% for the year and now has a price-to-earnings ratio of 15. Isn't that enough of a pasting?

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,027.05 -177.92 -1.10%
S&P 500 1,853.44 -26.61 -1.42%
NASDAQ 4,283.7530 -79.3910 -1.82%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs