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Cramer on BloggingStocks: The bears are back in town

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TheStreet.com's Jim Cramer says we'll see a big dip lower, but watch these key stocks for underlying buying interest.

At last, a test, a test of the futures! That's what we have been looking for, one of these gigantic down openings like the old days, where it goes down and you stand there and you get pounded. That's what the market was, basically, from the top of 2007 until March -- a series of days where you came in and the futures were down so much that you knew they were going to go lower, except for the people who shorted it the night before and were taking profits.

Welcome home, bears!

This test could be unlike any other for a while. The decline is so swift that there probably aren't many shorts on at all. I can imagine a few hours where those hungry for performance on the long side let it come in before they go back to work buying. They are not deterred by a selloff based on copper and oil, because they are not the hedge fund buyers of old. This is no longer an Atticus market, where 20 key stocks control everything. There are other areas that can go up even if copper and oil go down!

The reason I say it is a test is that every selloff from 2007 until March of 2009 stirred more selling. That's how we would get into oversold territories of unseen levels. But ever since the March lows, the selloffs have brought out the buyers. We haven't gotten oversold.

Will it be different?

I let the stocks tell me. Specifically, I am watching Citigroup (NYSE: C) (Cramer's Take), Bank of America (NYSE: BAC) (Cramer's Take), Google (NASDAQ: GOOG) (Cramer's Take), Apple (NASDAQ: AAPL) (Cramer's Take), Intel (NASDAQ: INTC) (Cramer's Take), Conoco (NYSE: COP) (Cramer's Take), Occidental (NYSE: OXY) (Cramer's Take), Medco Health (NYSE: MHS) (Cramer's Take), Express Scripts (NASDAQ: ESRX) (Cramer's Take) and Colgate (NYSE: CL) (Cramer's Take). All had been acting great on up days and not so badly on down days. If they change patterns and get hit hard, then maybe something serious is upon us.

Otherwise, 3% to 5% decline ahead. But I don't think more than that.

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 Bank of America and Express Scripts.

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Symbol Lookup
IndexesChangePrice
DJIA-46.0310,404.92
NASDAQ-11.962,164.05
S&P 500-3.611,102.63

Last updated: November 24, 2009: 12:50 PM

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