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
down 50 points or an
down 10 -- that's one I am picking at -- or a
, 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
, which obviously had a great quarter vs.
, which are buying back stock furiously? I was on the
call, good dividend, nice deal unfolding with
Circle back to some blowouts,
Take a look at the
world. Or how about
with some nice growth?
Don't forget that
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 --
-- with the insurers, this time
-- or a broken buck cash reserve -- this time of course,
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.
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