Jim Cramer: A Disturbing Lack of Calm

NEW YORK (Real Money) -- Where will the selling strike next? What will be rerated down and relegated to the dustbin? Or will people just keep selling the same stocks until major gains are repealed and the exercise drives growth into value?

Last week was a huge week for the S&P 500, but the index was bifurcated to a degree that I haven't seen in a long time. The brutal selling of anything with consistent growth was shocking and swift. Anyone who watched the plunging of Celgene (CELG) knows this. We have been picking at the stock for Action Alerts PLUS, and it had been drifting down in a pattern that normally would have been viewed as a buying opportunity, given that the company has one big drug and two more on the way.

Then the roof caved in. Some speculated that it was because of a U.K. reimbursement ruling. Others talked about patent problems. But I think Celgene's real crime is that it has been a winner and that it is linked to Gilead (GILD), another winner. Gilead has been going down because some perceive the sales of the new hepatitis C pill to be disappointing, and others struggle with the comments made by Rep. Henry Waxman (D., Calif.), who said Gilead was charging too much for the drug.

Whatever it was, the selling in Celgene was relentless, with the sellers occasionally walking away to let it lift and then coming back with a vengeance.

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