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!
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.











Reader Comments (Page 1 of 1)
8-17-2009 @ 8:42AM
earlinda5752 said...
ya know i think that when people in the media make commets about the markets going up or down .it seems to happen. well maybe they could say one morning that the markets will go way up and stay up .and just maybe they will .i think people this this started this whole thing .
8-17-2009 @ 9:28AM
nickerson said...
Cramer you forgot to tell us slugs that you and your slime like Beck Quick got out of the marekt about a week ago after talking up the market, now the rest of us are holding the bag with the 401K money, nice work Crammer. Love setting in the bar around Wall Street and hear your million dollar friends laugh how they made in big in the market at the expense of the low life.
8-17-2009 @ 9:39AM
ebrandler34 said...
Fair is fair. Cramer has been cautioning viewers to take some profits for at least 3 weeks. Give him and Doug Kass credit: they were out earlier than most in March when people saw DOW 5000 on the doorstep.
Nobody is smart enough to hit "the turn" exactly, but Cramer was darn close back in late 2007, March 2009 and (I believe) three weeks ago.
Just be girded for a 10% drop, and if it only runs down 3-5%, count your blessings.
And don't forget, he is a great entertainer and a decent educator.
8-17-2009 @ 9:47AM
petrockstoney said...
Can't get out of stocks fast enough. I've had it with the thieves of wall st. Where is the jerk who loved saying "over the long haul, stocks are your best investment". Ya, sure.. I took a peek, a very conservative stock fun, got a whopping 1% annual return for the last 10 years. All the while, CEO's were getting billions, Madoff was stealing, .. on and on.. the market is a ripoff. I'm out, and I'm not coming back..
8-17-2009 @ 10:06AM
bill said...
if you want to lose money go listen crammer
8-17-2009 @ 10:35AM
Ken said...
No! If you want to loose money listen to Cramer.
If you want to get an ear full of shit! Listen to Cramer!
8-17-2009 @ 12:00PM
steve said...
Cramer is a idiot, he is hard to watch, I know I can't watch him. How can anyone take him serious yelling and screaming dressed in a clown outfit. Now CNBC will start putting people on air with BEAR opinions. The economy is horrible worst then it was in March. Once the Obama bandaid money wears off it will be 6000 for sure. There will be nothing anyone can do. What can the government do now another stimulus program. I just hope that all the Wall St thieves get theirs this time around. Hope Goldman goe's bankrupt
8-17-2009 @ 5:53PM
EDawgg3 said...
The pundits on CNBC are all as bad as Kudlow. They spew nonsense. At least Cramer is an entertainer. These people have a job and make big dollars spewing their rhetoric. Individuals must be able to read between the lines and do their homework.
No matter what the market is doing, somebody is making money. The current environment is so treacherous for equities, I cannot see how anyone that is aware of their environment could be bullish short term. Forget what Cramer or any of the other talking heads have to say. Make your own decisions.
8-17-2009 @ 9:44PM
Wily said...
Earlinda, Believe me, if there is any way to put positive spin on the market, it's being done. The real reason the market has gone up since early March is due to stopping mark to market accounting which basically allowed corporations to lie about their assets and liabilities. Also cutting costs, which is pretty funny. They cut manufacturing plants. They cut retail stores. Stocks go up. I guess that means when they get down to one manufacturing plant and one retail outlet, stock should go through the roof. Talk about a bubble. LMAO
8-17-2009 @ 9:57PM
arentany said...
Come on Cramer. You, of all the advisors, "get it." There is an implicit unethical theme here. I know yours is the realm of markets, but don't put this above what is at hand. No one should be in the market by now. The downside risk of getting caught when the house of cards crumbles far outweighs the gains of picking and choosing to the very edge of the abyss.
8-25-2009 @ 4:49PM
tony rusinak said...
cramer has not been RIGHT ever !!remeber when he said BUY bear stearns @ 75 just before it went belly UP !!