The Nasdaq-S&P Chasm Widens - TheStreet

Ns over Ss!

That, for the noncognoscenti, means

Nasdaq

over the

S&P

names. Every day we have been stuck with this dichotomy, but the chasm today seems as wide as the Mariannas Trench. It got so wide that we addressed it in our research meeting pondering whether, if the S&P keeps going down, it eventually has to spill into the world of

Matt "B2B" Jacobs

.

We think the expiration is truly playing havoc with the S&P, but there are some dislocations that are positively chilling.

McDonald's

(MCD) - Get Report

is emblematic. This stock goes down every day. There isn't an ounce of lift to it. At this pace, the stock goes to zero in 60 days! Or

Coke

(KO) - Get Report

? Talk about a stock that seems to be falling under its own weight. Get a load of

Schering-Plough

(SGP)

! I know Claritin has competitors, but what's been done to this stock shouldn't happen to a dog! And the banks? Nastola to say the least!

To me, this is a sign that mutual funds are frantically jettisoning

New York Stock Exchange

stocks to get long the world of Dot-Com Jacobs and "Genome"

Kasper

(

B2B,

New Tech 30,

biotech).

Compounding the situation is the possibility of value fund redemptions. Who needs them? And I think we will discover that the S&P index funds stopped getting in big money after 401(k) contribution time.

Oh, for the record, we don't think they will sell their

Brocades

(BRCD)

because of their

Bristols

(BMY) - Get Report

. We don't think the

Vitrias

(VITR)

get sold because of the

VFs

. And we don't think the

Commerce Ones

(CMRC)

get slaughtered on the altar of

Citigroup

(C) - Get Report

. We think they get bought!

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Brocade, Vitria and Commerce One. Cramer's fund also may be long or short certain stocks in his B2B rotisserie league or TheStreet.com New Tech 30 index. 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.