Too Much Negativity on the Nasdaq

True, we do lack any insight into a catalyst. But the group has been beaten up too much.
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This column was originally published on RealMoney on May 18 at 3:13 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Negativity is out of control in

Nasdaq

land. The combination of the alleged slowdown in orders from telcos and the lateness of

Microsoft's

(MSFT) - Get Report

Vista operating system has made everyone so fearful of tech that it has become a pariah. I have never in my career seen the bears more aggressive and the bulls more cowed than I am seeing right now in the Nasdaq.

What the heck is going on?

I think the problem is that we lack any sort of catalyst. We don't know what could ignite this whole depressed market, with its longest down streak since 1994, when a giant rally began. I know I can't come up with that catalyst. I thought we might have one in

Hewlett-Packard

(HPQ) - Get Report

, but people have shrugged that off. Maybe a takeover? Some sign that the whole

Ciena

(CIEN) - Get Report

-inspired telco ramp is still on? I just don't have it.

Still, the contrarian in me says people are too negative. We used to get a hidden-hand effect on the Nazz where it would go down and then buyers would come in and bid them right back up. That effect is now history, linked more to the commodities than anything else.

I just feel that the whole NDX is too beaten up in a short period, beaten up more than it was six years ago. Yet the stocks are actually cheap; they weren't then.

I would chip and pick, making small buys. It's what I know to do.

At the time of publication, Cramer was long Microsoft.

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