If the thesis works, the

Dow

has to stop here. We are taking profits in our banks and our retailers (we owned

Wal-Mart

(WMT) - Get Report

) and letting our

Automatic Data

(AUD)

go. We are not deploying that capital yet, but when we do we will deploy into Matt "I-Am-Still-Alive-But-You-Dont-Know-It" Jacobs' names.

Threading the needle here, but we think the Dow can rally another 100 -- but many of the Dow stocks are at their strikes (Wal-Mart,

Coke

(KO) - Get Report

) or near them and will be capped.

I think many people were waiting for more capitulation in the

NDX

to occur, but I don't think it will because right now we are OUT of margin-clerk territory on the

InfoSpace.com

(INSP) - Get Report

and

Yahoo!s

(YHOO)

.

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