What do we do at Cramer Berkowitz when we feel that we could have a multiday move and need to get more inventory on before things ramp too far?

We look for sellers who are not in sync with a multiday move. We buy merchandise that is today out of favor because it ran up in anticipation but is now down on profit-taking. (

Texas Instruments

(TXN) - Get Texas Instruments Incorporated Report

and

Motorola

(MOT)

spring to mind.)

We take stocks that have been in the doldrums for weeks that could now have a couple of days' run: the banks and the brokers.

We buy high-quality old tech that is up, but not up enough that it has gotten away from us. Here I would use

Lucent

(LU)

as an example or

Hewlett-Packard

(HWP)

.

And we buy retail stocks that have been down because people felt the

Fed

TheStreet Recommends

was going to tighten aggressively and turn the consumer off, including stocks like

Gap

(GPS) - Get Gap, Inc. (GPS) Report

and

Dayton-Hudson

(DH)

.

We don't buy damaged goods. We don't look for things that have weak fundamentals, that are down and could bounce. That's too hard. We don't want to buy all of the drug stocks, but instead just pick up more of our favorite,

Bristol-Myers

(BMY) - Get Bristol-Myers Squibb Company Report

. We don't buy the

Procters

(PG) - Get Procter & Gamble Company Report

because they haven't rallied. They still may not.

And we let our out-of-the-money calls from the other day make up for the rest of the missed exposure.

In sum, we buy earnings winners that are having good quarters, that are down either because of profit-taking or because some seller doesn't believe in the turn.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Texas Instruments, Motorola, Bristol-Myers Squibb, Hewlett-Packard, Lucent, Dayton-Hudson and Gap. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes 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 at

jjcletters@thestreet.com.