Let's smash some more idols. Here's what is supposed to happen at the beginning of the year.

First: The big winners have to sell off. Reason? People have deferred their capital gains to this new year. Reality? False. The winners keep winning. Most of last year's biggest winners are still ramping, just like last year. The mutual funds that took them up all last quarter are taking them up again as they put their new money to work.

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Second: The losers are supposed to snap back. Reason? Tax-loss selling abates. Reality? False. The losers keep losing and redemptions from the value funds put tremendous pressure on all of these stocks. They go down more than other stocks.

Third: The breadth is supposed to get better. Reason? New money comes in, taking up all stocks. Reality? False. The only new money going into this market goes right to the winners. In fact, this year's market seems even narrower than last year's market.

Fourth: Listed (New York Stock Exchange) has to narrow the gap with Nasdaq. Reason? The NDX has to take a rest after last year's ramp; NYSE should play catch-up as a valuation play. Reality? False. In fact, the NDX performs terrifically; the New York Stock Exchange performs like death.

What will be the result of these icons being smashed? More strategists will turn negative. And the winners will keep winning...

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. 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.