Two Leaders Stumble

The comedowns in Wal-Mart and GM may mean the market will scrape its knees.
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Wal-Mart's (WMT) - Get Report a big sacrifice of leadership. What we had seen for the last few weeks was a sense that the consumer simply didn't care about the higher oil prices. That came from a resurgence in two stocks: Wal-Mart and General Motors (GM) - Get Report. They acted great and they tended to make us feel that we were in great shape. The largest auto company and the largest retailer rallying? Isn't that a sense that all is well?

Now, suddenly, we are thinking that GM and Wal-Mart were flukes. GM's rally came from just a sense of relief that it wasn't going belly-up. Wal-Mart's now seems caused by a calendar change.

I have to tell you that what's most deadly here is that we lose generals the way that a bad army puts its top officers on the front line to be sacrificed. The notion of the generals, the leadership, is that they are roughly bulletproof. Instead, what we have are stocks that lead us up and

down

.

Deadly.

Watch for this. We don't want to see that money going back to

Pepsi

(PEP) - Get Report

or

Phelps Dodge

(PD) - Get Report

.

I believe that GM is a reformed company and is going to bounce back. But holy cow, was a lot of money expended to move Wal-Mart from $45 to roughly $50. Now it just looks like a double top and it is finished.

I can't disagree with that judgment.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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