This column was originally published on RealMoney on Aug. 3 at 11:42 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
Suddenly, we have to be selective in the slowdown stocks.
catches a downgrade from Wachovia and it plummets back to $53.
lowers guidance and you get smacked in
(that Guidant acquisition is looking more and more like a colossal mistake).
We can look at this two ways. One is to say that the trend into the soft goods and defensives has run its course. The other is to say we have simply become more selective and are no longer in the "bid everything up because we could catch too much disappointment" phase.
I am strictly betting on the latter. Why? Because why else will
Procter & Gamble
keep going up? That was the tell that this is an intra-rotation rotation and no more than that.
Watch the employment number tomorrow. Any strength and you are going to go right back to this group, but now the stocks matter. You can't throw darts anymore. Not even at the drugs, where
suddenly has Lipitor issues, which look a lot like pre-Plavix issues that have dogged
-- although I would still buy it because it is too cheap.
Don't lose heart in these stocks. We have three more months of outperformance, and five more months if the
tightens again after this one.
At the time of publication, Cramer was long Bristol-Myers.
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