Please don't tell me we are back in the world of no institutional memory again. That all that happened is we dropped enough points to freak everyone out, get the bears out of hibernation and then it is onward and upward. Nothing would shock me, especially the vehemence with which everyone hated the market again Monday.
If you replay what happened, most of the issues stemmed from statements made by the same Europeans that have said no more stimulus is needed, the same Europeans who have been in denial the whole way publicly, but believe me they have been stimulating like mad because their banks are a much larger size relative to their gross domestic product than ours and are in many ways worse off.
To take them seriously about the end of stimulus would mean you would have had to take them seriously for the whole crisis, and if you did you haven't made any money.
Domestically, the focus is health care and how President Obama's going to reform it. Here the people I respect the most in the health care stock-picking business are saying that the plan won't be that big and won't do that much damage. I am not going that way. Every time anyone has said that Obama may not succeed in getting what he wants or will accept half measures has been dead wrong. He is simply so powerful and so loved that to go against him and House Speaker Nancy Pelosi on health care is to take your life into your hands.
I am sure that when the smoke clears you can go buy WellPoint (NYSE: WLP) (Cramer's Take) or Zimmer (NYSE: ZMH) (Cramer's Take) or Stryker (NYSE: SYK) (Cramer's Take) or Eli Lilly (NYSE: LLY) (Cramer's Take), but for now, who can take that pain? Who can battle the Obama phalanx?
Still, I think we are back to where we were before the selloff: worried about earnings. I think that the banks will be better than expected, the oils will be better than expected and the techs will be better than expected and now that they have come down, I think that the odds favor some stability Tuesday and a ramp into expiration if we get it.
Jim Cramer is co-founder and chairman 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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Reader Comments (Page 1 of 1)
7-16-2009 @ 9:51PM
The Citizen said...
The popularity polls are all done in big cities that the great welfare messiah pulled off in the election. Take a poll in anywhere but a large city and he has no support. This is how the media bias plays the numbers.