This Market's Just Too High - TheStreet

Editor's note: This column by Jim Cramer, originally published on RealMoney early Tuesday morning, foresaw the necessary selloff to wash out all the global concerns.

Down boy, and stay down. Open down. Be down. Don't rally. Wash sellers out. Please.

There, I talked to this market like the dog that it is. We need to wipe out every last bit of optimism here about anything -- China, Germany, Europe in general and certainly the United States. We need stocks to go back to reflect collapse in Spain and no soft landing in China and a split-up of the euro.

In short, we need what took us to

Dow

9700 and

S&P

1050, which is precisely where we are headed.

Last night when I said the market was too high and multiples too high and the market had to go lower, I was surprised by the outpouring of people who thought they heard me say that the market is "overvalued."

I did. I said it. I believe it. We are in a mess here, and when I canvassed people for companies they like that are doing better than a few months ago, I could count on one hand the responses.

The market is too high, unless employment comes down, Europe stabilizes and the spill is stopped. We haven't seen these. Plus, last night, people are saying we lost China even though I think it was selling in advance of buying their largest IPO ever,

Agricultural Bank of China

, which is a poorly run national bank that is more of a risk factor than a positive.

The only good news here: If we keep going down and employment on Friday is horrible, at least we won't go down as huge as we would have otherwise. That's some silver lining.

The fact that the market's opening down big will no doubt create some bargains. But to take advantage of them you

must

believe employment will be robust on Friday. It is not like the old days when you get a weak number and the

Fed

cuts rates. You get a weak number and you get 1934 bond yields because throughout this period the undercurrent is deflation, dramatic deflation.

We have the most money in cash that I can recall for

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. We have levels that we will buy. We were far away from those levels Monday. We will be at those levels today. We have waited and waited. We will not pull back from buying when we get them. We will pull the trigger.

And I still believe Dow 9700 holds. We will be very oversold at that level. It will reflect all of the negatives except systemic European risk.

But the pain will be great, and the rebound muted, 'cause it's just a real bad market that cannot get out of its own way and falls on its own weight whether a company's doing well or badly, whether it needs marking up or doesn't, and whether it is likely to have a good second quarter report or not.

The market's just too high and there is still too much belief that it is too cheap.

It isn't.

Jim Cramer, co-founder and chairman of TheStreet.com, writes daily market commentary for TheStreet.com's RealMoney and runs the charitable trust portfolio,

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. He also participates in video segments on TheStreet.com TV and serves as host of CNBC's "Mad Money" television program.

Mr. Cramer graduated magna cum laude from Harvard College, where he was president of The Harvard Crimson. He worked as a journalist at the Tallahassee Democrat and the Los Angeles Herald Examiner, covering everything from sports to homicide before moving to New York to help start American Lawyer magazine. After a three-year stint, Mr. Cramer entered Harvard Law School and received his J.D. in 1984. Instead of practicing law, however, he joined Goldman Sachs, where he worked in sales and trading. In 1987, he left Goldman to start his own hedge fund. While he worked at his fund, Mr. Cramer helped start Smart Money for Dow Jones and then, in 1996, he co-founded TheStreet.com, of which he is chairman and where he has served as a columnist and contributor since. In 2000, Mr. Cramer retired from active money management to embrace media full time, including radio and television.

Mr. Cramer is the author of "

Confessions of a Street Addict

," "You Got Screwed," "Jim Cramer's Real Money," "Jim Cramer's Mad Money," "Jim Cramer's Stay Mad for Life" and, most recently, "Jim Cramer's Getting Back to Even." He has written for Time magazine and New York magazine and has been featured on CBS' 60 Minutes, NBC's Nightly News with Brian Williams, Meet the Press, Today, The Tonight Show, Late Night and MSNBC's Morning Joe.