A Pox on Both Your Houses

Oversold and overbought: As the Net got ahead of itself and cyclical America fell too far behind.
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At what point do we just say that the moved stocks, the ones that moved up and up and up, are just plain history, and we better start thinking about whatever we haven't looked at or bought these last five years?

There was a huge amount of resignation Monday on Wall Street, a tacit admission that if it worked last year, it isn't going to ever work again. At the same time, those industries that haven't worked now are working REGARDLESS OF THE FUNDAMENTALS.

Or, to put it another way, I can't tell which is more nauseating, buying

United Technologies

(UTX) - Get Report

up 40 points or

DoubleClick

(DCLK)

down 40 points. Both seem equally absurd. Both seem like they should switch directions.

But one is a "real" company, selling at a reasonable level. The other is something that everybody owns but that is hopelessly overvalued. Of course, both characterizations are excessive. The Net got ahead of itself and cyclical America fell too far behind. The tendency to say "a pox on both your houses" was very strong Monday.

But the only pox, of course, was on the

DOT

and its cousins. So, another month begins where the last left off. And again, the edge goes to the overbought cyclicals and away from the oversold techies, both new and old.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long DoubleClick, although positions can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

letters@thestreet.com.