Four Points of Light

Cramer uses another checklist to determine which stars need to be aligned to make yesterday's selloff a one-day phenomenon.
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Could this be a one-day selloff? Could yesterday's viciousness be contained to one brutal, nasty session? The answer is "certainly," provided that a couple of stars align correctly.

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. So let's get the checklist going that will determine whether we hit bottom at 4 p.m. yesterday.

    Europe stays strong. Right now as I write, Europe is yawning and not worrying about the U.S. action. That's a point for the bulls. The purchasing managers' report doesn't show a huge (plus-70) jump when it gets announced at 10 a.m. If we get a benign report, we will have to jump in with both feet. Yahoo! (YHOO) has legs. The market can be pretty stupid at times. If Yahoo! stays up huge from this S&P inclusion, we could have a rally in the rest of the dot-coms and of tech in general. No one from the Street starts downgrading. Sometimes analysts get jittery, and they decide that they are going to bail ahead of a big selloff. But if they come in this morning and see the futures up and Europe up, they probably will just reiterate their buys.

All in all, there could be a strong case made that we have seen the last of the selling if the checklist holds up. I know that I am a buyer, not a seller, and will be buying some stock ahead of the purchasing managers' report, keeping some powder dry if the number is rotten.

You have my game plan.

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