A Textbook Selloff

We've had a huge run, and Cramer thinks this dip is healthy, not tainted.
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You think you are in pain with your Net stocks? I just got back from three hours at the

Department of Motor Vehicles

in New Jersey. This market is treating me better than the service I got there.

I am still following the game plan I outlined this morning. Buying the weakness, trying to sock in some

AOL

(AOL)

and some

Lucent

(LU)

-- you know, the usual suspects. Bought some

TWX

(TWX)

'cause I love RoadRunner. Not willing to take the big Net swing yet. A little too much supply for my taste, but, yes, lower prices make me more interested -- not less -- as I am NOT a momentum player. (I always view these guys as people who hate stocks as they go down and secretly believe they get MORE expensive as they go lower. I still can't be that counterintuitive.)

What are my tells of health here, the things that make me think this is a selloff to buy, not sell? One is that most of the stocks I like are giving back a little -- but not a lot -- of their gains, which suits me fine. Two is the health of

IBM

(IBM) - Get Report

before its quarter announcement after the close. That seems bullish to me. And three is that we have had a huge run, and it is perfectly textbook to have this kind of selloff. It is healthy, not tainted.

Could I be wrong? Of course, which is why I am taking small bites, not large ones. That way, I still want it to come down tomorrow, and it will annoy me if it doesn't, but I could win either way.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At the time of publication, his fund was long Lucent, Time Warner and America Online, though positions may 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 by sending a letter to TheStreet.com.