Despite problems in several sectors, "This is all business as usual," Jim Cramer said on his
"RealMoney" radio show Monday. "One by one, these objections will be dealt with and the picture will emerge rosier."
Some stocks are having a difficult time. "Homebuilders are facing problems as orders shrink and costs grow," Cramer said.
In addition, healthcare is falling apart with
trying to get rid of competitors' margins in generic drugs. People can't own
right now, Cramer said.
Oil service stocks are still down, too, as are cyclical stocks, he said. And banks are down because of housing defaults.
However, "People are too negative and need to learn to be more positive," Cramer said.The homebuilders are ready to go higher, Cramer said, adding that he needs people in the market right now, not out of it.
In addition, over the weekend, Cramer said he was reading a Goldman Sachs upgrade of
Darden reported an "amazing quarter" and the company's Olive Garden division is probably "the best it's ever been," Cramer said.
Similarly, although people thought
was going to "fall apart," it also reported an "amazing quarter" because its biggest cost - energy -- is going down, he said.
is the No. 1 aluminum producer in the world and "a great company," but "it keeps getting trashed," Cramer said.
It's so easy to see this stock roll over, that Cramer said he wonders whether the short game was ever this easy before.
Alcan is a well-run company and its business is "super," he said. It's doing everything right, yet Cramer still wants people to sell the stock down here.
"Cyclicals are not done going down," Cramer said. "They are getting halved."
Bad News Bear
There is never a level where people can say all the negativity of a piece of bad news has been priced into a stock, Cramer said.
"This is a market that can repeatedly punch a stock because of the same bad news, over and over again," he said.
as an example, Cramer said it is a very good company that is in freefall.
This is a stock that was at $55 and it went to $44 in a straight line because oil is down, even though Occidental is growing at 8% a year and it sells at seven times earnings, he said.
is another company that is going down, despite being an 8% grower, Cramer said. In fact, the stock is going down to its 52-week low and yet, sells at five times earnings.
"This is nuts," Cramer said. "And unless you have a very, very tough gut, you're not going to be able to last through it."
Although he feels very strongly that if he quits the energy sector all right here, he'll regret it, Cramer said people shouldn't be in it unless they have a six-to-nine-month view.
"Oil is still not done going down," Cramer said.
Taking a look at the Amaranth fallout, he said the market is so small that the natural gas space was held up by one hedge fund.
"We are in the early stages of a freefall for energy," he said. "There is no demand for natural gas in the system."
Cramer advised looking at parent companies of airlines, such as
( UAUA) and
, for a trade -- something he doesn't usually do.
Oil Service HOLDRs
, exchange-traded fund is in free-fall, Cramer said.
"I, for one, don't know when these stocks are going to be done going down, he said. "And you don't know when they're going to be done going down, so pick at the stocks."
Buy a little on the way down, Cramer said.
When a caller inquired about
, Cramer said he believes it's going to have a good quarter, "maybe even a great quarter," and will beat its estimates.
However, he said
Advanced Micro Devices
is a better company and will also do well.
Cramer told another caller when he sees
, he sees "a company that is growing well for a utility."
Although he has been recommending
( TXU), Cramer said he would ride Southern to $40. The stock was recently trading at $34.71.
"I believe there is more than a 10% gain here and I want you to ride it out," he said.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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