Back to Big Growth: Trend or Countertrend?

Cyclicals are still the trend, though Cisco's report tonight likely will extend the countertrend.
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Return to the

Janus

(JAVLX)

Twenty?

Sure does feel like it. People seem to want to get right back into The Stocks that Everyone Loves, or TSEL, as I like to call them.

So, is this the new trend or is this just a countertrend to the stronger cyclical stocks that are just taking a break?

Cyclical stocks, in case anyone hasn't noticed, have been stalled for several days. Stalled with cyclicals typically means you have to short the heck out of them because they are objects that never remain at rest. They go up or they go down. But never stand still.

No way that the Janus crowd can move its darlings without money coming out of the hides of the

Georgia Peaches

(GP)

and the

Dow Chemicals

(DOW) - Get Report

.

For me, I will stand there, on the bid side, as I did yesterday with

Georgia Gulf

(GGC)

(not as tasty or as big as the Peach, but it can rock when it gets it right). And I will sell none of these stocks. I will use the selloff to accumulate them, if only because I continue to believe that the cyclicals will be the stocks of choice this quarter.

I could be wrong. I was wrong at the beginning of this move, when I was too negative, but got on board during a previous selloff at the 585 level on the

Morgan Stanley

cyclical index. I could be wrong for a few days.

But there are tons of people still underweight in these stocks (see Jeffrey Applegate's excellent

Lehman

piece about the

S&P

this week) and they, too, will use this light selloff to put money to work in the group.(My take, by the way, is that the cyclical selloff will be prolonged by

Cisco's

(CSCO) - Get Report

reporting tonight. I am long Cisco.)

So I think Janus is countertrend. And cyclicals are the trend. But I am enjoying a TSEL romp for a couple of days. Remember, the market is only a zero-sum game for a day at a time.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Cisco and Georgia Gulf. 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

letters@thestreet.com.