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Cramer on BloggingStocks: We need a washout

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TheStreet.com's Jim Cramer says stocks are at insane value levels, but they'll drift lower until we get capitulation.

Go down, stay down. Find a level. Stop the nonsense with the futures. Wash 'em out. Capitulate.

These are everyone's sentiments today as we see the same thing play out over and over on the downside. We can't even remember what the "victory" of being down "only" 300 was Friday given that here we are right back on the red-hot griddle touching lower levels again today.

The volume of bad news is so overwhelming that we forget that there have been whole markets taken down at other times by a collapse of an emerging market or two, and now we have several runs on the IMF bank a week! Ukraine? How did Ukraine get in trouble? Hungary?

Oh shoot, I bet Switzerland's in trouble.


Meanwhile, the only two things that matter to Main Street -- the election and the unemployment number -- aren't even coming into play.

Still, here's an odd one. It is getting more difficult to be as bearish as one would like. We have stocks like U.S. Steel (NYSE: X) (Cramer's Take) trading at 2 times earnings.

Doesn't mean it can bottom.

It does make a stock with a 3.47% yield and a decent balance sheet look attractive when it gets to 1.5 times earnings and a 5% yield.

Random musings: Many thanks to all the great people who came to New York for our conference Saturday. I hope you had as good a time as I did!

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. At the time of publication, Cramer had no positions in the stocks mentioned.

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Last updated: July 09, 2009: 10:23 PM

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