Sell-off seems more like the real deal

This bump might indicate that things are worse than business as usual after all.

By Jim Cramer Oct 23, 2012 9:11AM

thestreet logoDatacraft Co Ltd, imagenavi, Getty ImagesSo the futures run-up into the close was phony and not the sell-off beforehand?

 

Aided by Dupont (DD) and Texas Instruments (TXN), are we just going to go right back to where we were before the programs kicked in? Was this some errant bet by some market player who believed Romney would score a KO Monday night and Romney is better for stocks than Obama?

 

Seriously, that whole move is a total head scratcher. When I was trying to write my open for last night's show, I was acutely conscious that by the time I finished having my makeup applied, which actually takes about seven minutes, the market's coloration had changed and changed for the positive -- for no reason whatsoever.

 

Of course, when it's happening, you think the decline was for no reason whatsoever, given that the last word is so final in this game.

 

Now we look at the landscape and we think perhaps Friday's sell-off was the beginning of something bigger?

How about this way to look at it: We are seeing some weakness in the industrials but pretty good performance in other sectors, including domestic housing and banks. We are seeing pronounced weakness in tech as that sector shrinks. We are seeing that oil and gas can't rally when Iran is making nice, something I didn't think would matter much but is clearly a cause and effect the day after a debate, when nobody seems to want to upset Iran.

 

And we have the higher-yielders hanging in as slowdown talk intensifies.

 

To me, that feels like slightly worse than business as usual, so the run-up was a joke.

 

This feels more like the real deal, and I am beginning to believe it will remain that way until tech plays a smaller role in the S&P, because it is tech and even the tech divisions -- think Dupont -- are hurting this market.

 

Jim Cramer's face

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long DD.

 

 

 

More from TheStreet.com

83Comments
Oct 23, 2012 11:14AM
avatar
We need everyone and his brother to start stomping on his/her favorite do nothing Congress person or Senator to immediately stop these senseless trade policies. If ever there was a time for Nationalism it is now.  The Political corruption and the serving of the Internationals and their shareholders over the interests of both working Americans and small business Amerca has now officially ended.. As the old saying goes, you have to break a few eggs to make an omelette and now is the time.  Lets get America working, prospering, and give creedence to the words made in America. The New World Order is a failure.  The idea we could incorporate all the diverse interests in the world is dead and will not work.  For those of you who wish a more complete picture of what has actually occurred and what is motivating the decline of America please do this one thing.  Google the net worth of every Socialist leader in the world you can think of.  Castro, Chavez, Putin, Obama, Mubarik, Ghaddafi, Assad.  You name the rest.  Ghaddafi died with a 200 billion dollar net worth.  These cats have had their say about all the care they have given to their countries but the bare truth is now exposed.  The American citizen is being told that he needs to have a lesser lifestyle to benefit the downtrodden in the world.  Well we now know where the money is and will be going, into the pockets of those keeping their populace in poverty. Just google these phonies and you will then agree with everything I have said.
Oct 23, 2012 10:36AM
avatar

today the market is all about the computer trades.  super analysis of response systems and response programs.  a battle of computer against computer.  get one to fake a rise, then sell.  get one to fake a fall, then sell. 

 

has little to do with the value of a company anymore

Oct 23, 2012 1:44PM
avatar
"Still plenty to like in this market"

That was cramers opinion yesterday - this guy is probably the WORST pundit I have ever seen. He said stay out of the market 4 years ago at a market bottom !!!

Oct 23, 2012 1:17PM
avatar
Today it's "real".  Tomorrow, I might change my mind.
Oct 23, 2012 2:05PM
avatar

OBAMA: "I will not raise taxes for anyone making less than $250,000? (LIAR)  Taxes go up Jan 1st for 163 million people, most making less than $250,000??

 

Obama, who has already spent a billion dollars on his campaign just borrowed another $15 million from Bank of America for more campaign funds?? (Is this a guy that you want to run the US budget?)

R+R ... take it to the bank.

Oct 23, 2012 2:00PM
avatar

Stock market tumbling because the economy is in the toilet, inlation on the rise, we have no more money for an economic stimulus because Barry already spent all the money?? Forclosures are at all time highs and the banks aren't proccessing them quickly enough because there are so many ..... the rest of the world leaders hate Obama who is lying to the American people about what happened in Libya .......

The election is tied, but with the country in the toilet and the people in this country already in the toilet .... can you say Jimmy Carter???

Can you say bye, bye, Barry!!! 

Oct 23, 2012 2:16PM
avatar
How is it possible that we have really smart and informed people on this blog and yet we have so many idiots running our country? When will we stop electing these rich a**holes that don't care one bit about us and look for candidates that care about freedom and the American people. Until we do nothing is going to change.
Oct 23, 2012 1:39PM
Oct 23, 2012 1:44PM
avatar
Obama took advice from his inner circle to protect the wealthy at any cost.  Bernanke and Geitner obliged.  They pumped air into this market in order to give those well healed folks the feeling of calm and security.  It was total BS and now that it appears Romney may have a chance to win.  They think if he does win he will pull the plug on this charade and it will leak back into reality. We all knew this was just an illusion now didn't we? 
Oct 23, 2012 11:03AM
avatar

Bargains ! Bargains! and more Bargains! Now my dividends will buy even more stock at reduced prices ! Thanks guys !

Oct 23, 2012 1:27PM
avatar
I felt this coming on last week and sold while the market was still high. Keep dropping....600 plus and I'm back in!  LMAO!  Otherwise I'm waiting till after the election.
Oct 23, 2012 1:39PM
avatar
The 14%'ers are taking profits so they can pay the additional taxes they'll owe starting Jan 1, 2103.
Oct 23, 2012 2:11PM
avatar
Duh? Do ya think its areal deal Cramer?
Oct 23, 2012 10:28AM
avatar
Smart Money left the house ! TAKE YOUR MONEY AND RUN  !!!  SELL SELL SELL  !!!!!
Oct 23, 2012 1:41PM
avatar
 The universal, democratic prosperity that Americans now look back to with such nostalgia was achieved only by a colossal reigning in of markets, by the gargantuan effort of mass, popular organizations like labor unions and of the people themselves, working through a series of democratically elected governments not daunted by the myths of the market.

We may have democracy, or we may have wealth concentrated in the hands of a few, but we can't have both.

Oct 23, 2012 3:51PM
avatar
Obama does pretty well in the debate, and the market crashes!

No worries! Two weeks until Reboot and Rebound!!!
Oct 23, 2012 2:32PM
avatar

I am all out and three brokes called me today.....after 3 weeks of taking easy........Brokers are going crazy brokers are trying to dump it now...it was all their own preferred stock at over priced prices...trying to raise capital and the pressure back up......I laughed at all three and tolled them it is suicide...the real blood bath has started is about to get BIGGER and it is going to be BAD....and after a minute into explaining to them my  reasons why to them they took my advise and hung up......! THEY ARE TRYING TO STICK YOU WITH WORTHLESS JUNK...!!!

Reasons #1 After 4 years of cutting employees, cutting benefits, cutting hours worked and cutting other cost...They CAN NOT CUT ANY FURTHER......THEY WILL GO OUT OF BUSINESS......LOOK AT ALL THE CASUALTIES SO FAR........ Reason #2 Those Comapanies that merged or  HAVE NOT REALIZED THE COST SAVINGS OR TAKEN ADVANTAGE OF THE SYNERGIES or BECAUSE OF HIGH DEBTS TO FINANCE THE  TAKEOVER HAS ONLY SEEN A REDUCTION OF TRENDING SALES.....THEY WILL IMPLODE...!!!! Reason #3 ALL THE MAJOR TRANSPORTATION INDEXES ARE DOWN, TRAFFIC IS DOWN, RAIL IS DOWN, GAS INVENTORIES AND PRICES ARE UP.....THIS WILL LEAD TO A GREAT COLLAPSE...!!!   THIS IS WHATOBAMA AND BEN AND THE FED CROWN OF ENGLAND HAVE BEEN HOPPING FOR....!! THE NEW WORLD ORDER TO SAVE THE WORLD...!!! IT HAS ALL BEEN PRE-ENGINEERED...!!!! OVER THE CLIFF WE GO...!!

Oct 23, 2012 1:49PM
avatar
Yes it is so obvious that President Obama cares about rich people more than Romney does !!!

Where oh where can I find the meds !!
Oct 23, 2012 2:51PM
avatar
Read " Death by China, confronting the Dragon."    by Peter W Navarro,  Amazon    to learn how China is out smarting us.....This book opens up your eyes on what is slowly happening in China.   I was in China two years ago and experienced what the author is talking about.    China thinks  in terms of decades instead of years.  The author documents his points where they are  cleaning our clock,  where they are investing in commodities in foreign countries.  While we are cutting back on anything that will help our economy.         Go Romney,   get us out of this mess.  
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

116
116 rated 1
265
265 rated 2
429
429 rated 3
612
612 rated 4
499
499 rated 5
525
525 rated 6
701
701 rated 7
533
533 rated 8
337
337 rated 9
131
131 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
UPLULTRA PETROLEUM Corp10
COPCONOCOPHILLIPS9
TAT&T Inc9
DVNDEVON ENERGY CORPORATION9
EOGEOG RESOURCES Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.