It's Just a Healthy Pullback

 | Jan 26, 2012 | 3:41 PM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:








Wait a second, you mean it can do down, too? You mean that sometimes the disappointments matter? I thought we we're in stock market Camelot where there's a legal limit to the decline here!

Here's the deal. We can play pin-the-tail-on-the-selloff. Housing starts not so hot. Jobless claims nothing to write home about. AT&T (T) disappointed. No Greece deal.


But the truth is that we've been up so much that the exuberance was getting a little irrational. We need to see a selloff to get rid of the Johnny-come-latelies who just started buying, the people who waited until Caterpillar (CAT) was up 20% to come in and buy, the people who think that Wells Fargo (WFC) is not allowed to go down and that Bank of America (BAC) should be at $10.

I don't expect anything big here on the downside. We have three business days left of a glorious month, and I believe that mutual and hedge-fund buyers will step in to preserve their gains. They have to. Some of their longevity may depend on it, particularly those firms that suffered mightily from an overweight in tech and financials.

I don't like markets that are parabolic. They get crushed in the end. I like stair-step markets.

Today feels like the flat part of the stairs.

That's where the stability comes in.

I like it.


More from Jim Cramer:

Columnist Conversations

today is a good day to lighten the load and take some positions off the table. SOLD WB OCT 85 CALL AT 11 (i...
I reached out last week to my close friend Ken Shreve, who is a prominent writer for the IBD.  I asked Ke...
I reached out last week to my close friend Ken Shreve, who is a prominent writer for the IBD.  I asked Ke...
View Chart »  View in New Window »



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.