Some of the good guys, the pristine stories, have to stop going down before this market can go forward. Let me give you three examples.


(IBM) - Get Report

reported a good number. All the analysts were happy. No one downgraded and numbers moved higher. But all that has happened is that the stock has gone down.



(MSFT) - Get Report

seems to have been punished enough. It is down 10% from its high and told a great story this week. But it is still for sale.

And finally,



. Here is a stock that is as hated as I have seen it. My email is filled with negativity about AOL, some of the usual arguments, plus worries about subpar growth. To me, AOL delivered;


(AMZN) - Get Report

didn't. But the market isn't distinguishing between good and bad.

Three good quarters; three stocks much lower. These are the tells of health. To expect this market to rally without these guys is probably wrong. We want to see these stocks turn before we would "average up" and get longer.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, the fund was long AOL, IBM and Microsoft. 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