This column by Jim Cramer appeared earlier Monday on RealMoney. Click here for a free trial, and enjoy incisive commentary all day, every day.
The charts show no faith. Doesn't matter the industry, health care, tech, banks or defense companies. They all look terrible. Just horrible. Not saying, therefore, that everything must go down. Am saying that it is really, really ugly almost everywhere you look.
Take the banks. Many are breaking down to or below levels where they did big financings, some well below, like
Bank of America
-- all pretty decent banks. Others have good yield but the yield doesn't seem to stop the decline one bit as we can see from
People's United Financial
, or, worst of all,
, which has a 5% yield and no problem at all paying it. The charts seem to think that it isn't good for it, though, because utilities of similar quality and less yield are going higher.
Or how about the incredible shrinking multiple of tech?
at 19 times earnings.
are at 9 times earnings, the former is supposed to be peaking in margins and is regarded as panicking while HPQ is clearly rudderless. Forget
; I am beginning to think there is no price people will pay for them.
Lots of high quality medicals seem to have lost all support.
, these are all shrinking beyond recognition. So much for what to buy in a re-recession, my term for double-dip.
The defense stocks are amazingly bleak and trade as if we aren't just pulling out of Iraq but also of Afghanistan.
been murdered here.
can't seem to be given away.
Perhaps the worst is retail where even after we got some decent earnings last week from
, the declines for stocks like the office products stores,
show no signs of abating. It is impossible to look at the teen retailers like
without thinking terminal thoughts.
are disasters as is
Unless you want to throw-up do not look at any of the insurers. The pressure on a
is completely out of whack with how their businesses are doing, unless the government intends to put them all out of business.
I think that things are better than all of these charts say. But then again the
is gripped with one of the ugliest head-and-shoulders patterns I have ever seen, one that won't be saved by
Las Vegas Sands
. A couple of food and beverage and tobacco stocks --
won't do the trick.
The charts look sick, sick indeed. I fear only until we get really oversold -- looks like that is coming -- will we see a cessation. Until then, bet on takeovers on individual stocks.
That seems to be the only tonic the charts show.
At the time of publication, Cramer was long Bank of America, Intel, JPMorgan, McDonald's, Altria and MedcoHealth
At the time of publication, Cramer was long Bank of America, Intel, JPMorgan, McDonald's, Altria and MedcoHealth. Jim Cramer, co-founder and chairman of TheStreet.com, writes daily market commentary for TheStreet.com's RealMoney and runs the charitable trust portfolio,
. He also participates in video segments on TheStreet.com TV and serves as host of CNBC's "Mad Money" television program.
Mr. Cramer graduated magna cum laude from Harvard College, where he was president of The Harvard Crimson. He worked as a journalist at the Tallahassee Democrat and the Los Angeles Herald Examiner, covering everything from sports to homicide before moving to New York to help start American Lawyer magazine. After a three-year stint, Mr. Cramer entered Harvard Law School and received his J.D. in 1984. Instead of practicing law, however, he joined Goldman Sachs, where he worked in sales and trading. In 1987, he left Goldman to start his own hedge fund. While he worked at his fund, Mr. Cramer helped start Smart Money for Dow Jones and then, in 1996, he co-founded TheStreet.com, of which he is chairman and where he has served as a columnist and contributor since. In 2000, Mr. Cramer retired from active money management to embrace media full time, including radio and television.
Mr. Cramer is the author of "
," "You Got Screwed," "Jim Cramer's Real Money," "Jim Cramer's Mad Money," "Jim Cramer's Stay Mad for Life" and, most recently, "Jim Cramer's Getting Back to Even." He has written for Time magazine and New York magazine and has been featured on CBS' 60 Minutes, NBC's Nightly News with Brian Williams, Meet the Press, Today, The Tonight Show, Late Night and MSNBC's Morning Joe.