NAPM Number Takes Out the Upside

The numbers are too high, and the big money's not coming Cramer's way today.
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See, that darned Purchasing Management number takes all of the upside out of the drugs and the banks, two stock sectors that should be working in an environment where people are worried about tech, as they are right now.

That's the box we are in. If things are weak for



, that should be good for the bonds. Hewlett


the new economy. If HWP is slowing or seeing a slowdown, you don't have a steaming economy. While I was on that call, I was salivating about how much money I would make in my


(BMY) - Get Report


Then the high purchasing managers' numbers come out -- and they are too high -- and I know the big money is not coming my way today.

Same thing with high-tech growth stocks. They sometimes act well when slower tech, like Hewlett-Packard, indicates a softer environment. The thinking there is, hmmmm, these highest-growth firms don't need a strong economy to hit the numbers. But they need a better bond market to increase the multiple people are willing to pay for those earnings.

Tell us what you think about the oversold market on our

message boards.

But the oversold reading (see

Meisler) is so high, that we can't just nosedive. Instead we kind of drift into a 1994 model where it goes down big, as it did in September, then allows for a bit of a rally in the faves -- Net, high-tech growth -- until the market works off the oversold condition.

Translated: Yesterday they pummel the


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and I buy it. Today they push it up and I sell it.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund was long Bristol-Myers Squibb. 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