A few days after the surprise 50-basis-point cut at the beginning of January, the market took a nasty header, falling hard, as belief set in that the cut was too little too late. Despair and gloom abounded. Then we took a look at how corporate America was doing and we decided that maybe things simply aren't as bad as the stock prices indicated. Stocks rallied and rallied hard, right into the rate cut last week. Then a few days after the cut, the market again took a nasty header, crushing stocks and hopes as a prevailing consensus got set in stone: The cuts are too little and too late and there might not be enough because employment is too strong.
I think once again this week we will now look around at how corporate America is doing, courtesy a bunch of tech conferences and quarters from
Cisco (CSCO Quote - Cramer on CSCO - Stock Picks) and
Disney(DIS Quote - Cramer on DIS - Stock Picks), and decide, once again, we have gotten too negative. See the pattern?
I continue to think that any selloff here will be contained and must be used to shuffle money into the market and away from the sidelines. I was with a bunch of money managers this weekend, all of who seem petrified of this market. I think they are right to be petrified of certain portions of the
Nasdaq, but retail, financial and growth cyclicals make a ton of sense to me. I have no retailers in the Action Alert portfolio, so far. This week I hope to get a chance to put some in at better, cheaper prices than we currently have.
And, just so you don't think me a Luddite, there are some tech companies doing well; they just are of such a highflying variety that I haven't had the stomach to highlight them here. At lower prices, though, that risk will dissipate, too.
Random musings: So begins a week of radio tests of various formats for my new show. I need your help. Call in at 877-541-0101 and ask me about the market after 4:45 p.m. today. Let's have some fun!
Jim Cramer
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