Pondering, pondering two big calls. Will ponder all weekend. First is Ron Insana's call, amplified on "Mad Money," that the world isn't coming to an end so you have to, after this decline, go all in with banks, insurers and housing stocks.The way Ron runs Market Movers is that you have to invest $200,000, and he's no mutual fund. He has to sell something in order to buy, and he wants so much exposure to the banks and homebuilders, which he thinks will have a multi-year turn, that he doesn't want to waste his time with the Bristol-Myers ( BMY) and the Microsofts ( MSFT). (Click here to see what he's doing.) Like in the old X-Files, I want to believe. You decide -- it's too hard a call for me, but I find it challenging and refreshing and, yes, given that I have followed Ron's work for more than 20 years, conceivably spot-on, as Ron is not known to move into anything lightly. This is a big call. The other variant call came from Doug Kass, who mentioned repeatedly to me and shared with the site the Nasdaq call and the notion that the negativity in the short trade is as crowded as he can recall. Given that Novellus ( NVLS) starts off the earnings season with what I think it is a big bang, he seems right to me. Add in the mix that I think health care is done going down -- look at Inverness Medical Innovations ( IMA) today, my new fave for Action Alerts PLUS because it is diagnostics -- and we could have something explosive: a bank, tech and health care rally that, candidly, I thought would start this week but was just dead wrong on. In every single case when someone I respect makes a move that's at variance with the consensus -- Ron to the homebuilders and banks, Dougie to the techs -- I have to rethink. I know people sure weren't rethinking today.
I bet they start rethinking Monday. These guys have been too right at the big calls (check Confessions of a Street Addict for Ron's 1998 call, and you know Doug's generational bottom call brought to you here on Real Money) to think that they both could be wrong now. Random musings: of Ron's banks, most of which I own, I like Huntington Bancshares ( HBAN) for spec. I cannot go with Hovnanian ( HOV), but that's an interesting dollar-store trade! ... Great section on Indymac over at our flagship site. That guy who ran it, Perry, raked me over the coals on one of his calls before the crash when I said people would walk away from homes. He basically said I didn't know what I was talking about. Get in line! At the time of publication, Cramer was long BMY.