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Cramer: Key Indicator Flashes Buy

The bulls in the bull-bear ratio are at only 36%.
Author:

OK, this is really important. One of my most beloved indicators, the bull-bear ratio, has hit a level that simply means you cannot have a big hit to this market, and that level is the 36% bull level.

I know I am not a chartist, but I have sworn by two technical indicators all my trading life: the S&P Oscillator and the bull-bear ratio.

Any time we get severely oversold, I hold my nose and buy, any time we get the bull cohort below 40%, I have to buy something, and when it gets too close to 35%, you have to cover all shorts and get long.

That's where we are right now. This is a very major piece of data that should encourage you to find something that you want to buy here. I think you need to go over which quarters were the best, and buy something you feel comfortable with, whether it is a

Goldman Sachs

(GS) - Get Goldman Sachs Group, Inc. (GS) Report

down 50 points or an

EMC

(EMC)

down 10 -- that's one I am picking at -- or a

GM

(GM) - Get General Motors Company (GM) Report

or a

Conoco

(COP) - Get ConocoPhillips Report

, all of which are very low-multiple stocks on the out years and can be compelling.

Why not take the other side of the nitpicking New York state attorney general and buy some cheap HMOs?

Why not take in some

Pepsi

(PEP) - Get PepsiCo, Inc. Report

, which obviously had a great quarter vs.

Coke

(KO) - Get Coca-Cola Company Report

, or

Procter

(PG) - Get Procter & Gamble Company Report

and

Merck

(MRK) - Get Merck & Co., Inc. (MRK) Report

, which are buying back stock furiously? I was on the

Jones Apparel

(JNY)

call, good dividend, nice deal unfolding with

Wal-Mart

(WMT) - Get Walmart Inc. Report

.

Circle back to some blowouts,

Avon

(AVP) - Get Avon Products, Inc. Report

,

Tupperware

(TUP) - Get Tupperware Brands Corporation Report

and

Hologic

(HOLX) - Get Hologic, Inc. (HOLX) Report

.

TheStreet Recommends

Take a look at the

Air Products

(APD) - Get Air Products and Chemicals, Inc. Report

/

Airgas

(ARG)

world. Or how about

Yum!

(YUM) - Get Yum! Brands, Inc. (YUM) Report

and

McDonald's

(MCD) - Get McDonald's Corporation (MCD) Report

with some nice growth?

Don't forget that

IBM

(IBM) - Get International Business Machines (IBM) Report

and

Corning

(GLW) - Get Corning Inc Report

had great numbers. Go look at some of the stuff that Bob Marcin is buying, all cheap, all could be explosive here.

I am giving you this laundry list because there is

very limited downside

when you get this few bulls and this much negativity.There is a lot of talk about a catastrophe --

again

-- with the insurers, this time

MGIC

(MTG) - Get MGIC Investment Corporation Report

-- or a broken buck cash reserve -- this time of course,

Citigroup

(C) - Get Citigroup Inc. Report

.

I don't know what the story is with MGIC, but I dislike it. Citigroup? So much that could be sold there that I am not sweating that program.

I would not be short here

as juicy as it has been to do so after a couple of days' run. The short side is way too crowded right now, way too crowded.

It just won't work the way you think it is. Too many people are leaning your way, and way too few are leaning the other way.

Any indicator can be wrong, of course. But this pattern is about as good as you can get. To ignore it is to ignore a lot of history.

At the time of publication, Cramer was long Citigroup, ConocoPhillips, Corning, EMC, Goldman Sachs, Hologic and McDonald's.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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