It didn't take long, but the accidental high-yielders are back. There's PPG Industries (NYSE: PPG) (Cramer's Take) back at 5%, where it was before it told us that March was a good month and April better.
There's Emerson Electric (NYSE: EMR) (Cramer's Take) over 4% even though last week it said orders lately had been better than expected. Or Honeywell (NYSE: HON) (Cramer's Take), so close to 4%, amazing, given that it reaffirmed earnings last week.
This market's viciousness should never be underestimated. Chevron (NYSE: CVX) (Cramer's Take) was breaking out to the upside last week, now it is breaking out to the downside with an almost 4% yield. The astounding declines in some of these drillers and natural gas plays are reminders that they are owned, still, by all hot-money players and not stable holders who don't get shaken out because they perceive value.
Some of the last-half-hour trading was so brutal that I called into question whether the exchange-traded funds that are double- and triple-powered weren't behind some of the reckless selling. Sure enough, a Columnist Conversation participant noted that when it's down the blame goes to the ETFs, but when it is up they don't get blamed.
I have opined endlessly how I don't regard them as equivalent, but at the same time I am perfectly willing to admit that stocks get marked up all of the time by bulls with lots of different instruments, and I don't care for that either.
Nevertheless, my point is that the destructive forces were overwhelming and almost unnatural in the end. Which is why the accidental high-yielders make the most sense.
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 was long PPG Industries, Emerson Electric, Honeywell and Chevron.
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Reader Comments (Page 1 of 1)
6-23-2009 @ 1:11PM
beachpaul said...
The DOW 8200 floor seems to be holding as well as it did back in January and February. So now what ? We tread water? We throw money piecemeal into the market? Buy on the dips? How does this get us back to DOW 12,000? How does this replenish our 401Ks that got hammered so bad? How many years will it take for us to just get where Cisco is now? Where it was when the decade began.