Looking for Logic in the Bank Selloff

Don't bother. Cramer can't find any. But remember this pattern the next time Greenspan gets ready to talk.
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Does someone have a chart somewhere that says, "Sell all banks the day before Greenspan ever speaks"? If you do, could you please send it to me so I can remember?

I am feeling the pain from the bank selloff as people routinely sell these stocks as part of the innate fear of Greenspan. The ritual of selling these banks -- and one look at the

BKX

index today will demonstrate it -- seems so ingrained that there ought to be some logic to it.

But there isn't.

Bank earnings have all been pretty good. No bank mergers, unfortunately (the

American Banker

just reported last week that bank mergers have plunged in number this year), so there isn't much out there to get the shorts to cover.

Keep an eye out for a snapback rally in this group if Greenspan just does his usual garbled neutral talk. And remember this pattern so you can profit from it the next time he talks.

Random musings:

Staying late to trade and listen to

AOL

(AOL)

,

Amazon

(AMZN) - Get Report

and

Broadcom

(BRCM)

. Lots of fingers crossed -- lotta good that will do.

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