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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

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%.

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

Many of the drug stocks have been rocked.

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?

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 17,304.33 +38.34 0.22%
S&P 500 2,012.14 +0.78 0.04%
NASDAQ 4,582.1530 -11.2720 -0.25%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs