Market finds solid footing on Fed foundation

As long as you don't fall into the trap of buying a secular decliner or a serial disappointer, you'll do fine.

By Jim Cramer Sep 21, 2012 8:49AM

TheStreet.com logoSometimes it won’t go down because it shouldn't go down. Thursday I felt outgunned and undermanned with my rap about how you can probably get ready to buy Union Pacific (UNP) off of the Norfolk Southern (NSC) call and how you should look for retailers to buy off of Bed, Bath and Beyond's (BBBY) disappointment and how, as I said on Mad Money, I would probably want to initiate a position in BBBY on Friday morning.

 

Sure enough, you did have to move on retail, although the rails stayed heavy. What I didn't see immediately was that, once again, the J.C. Penney (JCP) trade was back on, meaning the Ross Stores (ROST) names, which were perceived to be hurt by a resurgent JCP, are back in play. Plus, the dollar stores started moving back into the green, too.

 

That makes sense. What's been the undercurrent these past four days? That the price at the pump is coming down. We know that when we see that we buy Ross, Dollar Tree (DLTR) and TJX (TJX), because it means that the people who spend a larger percentage of their money on gasoline can now spend it where they shop.

 

What bothered me is that I had to deal with a firestorm of "it's over" people because of the NSC-BBBY action.

 

So let me say it again: The hallmark of this positive action, the one we have had for months now, is that the money goes somewhere. We are done with the days when your screen is drenched with red and stays red. We are in the days when the screen is drenched red and you have to go find Dollar Tree and Ross and buy them.

 

That's because, as I said Thursday in my last piece on Real Money, this market is a solid market with great Fed underpinnings and as long as you don't fall into the trap of buying a secular decliner -- any company having to do with coal or personal computers -- or a serial disappointer, at least of late the case with BBBY, you will do well when the futures take everything down, because, alas, not everything deserves to stay down any longer when the futures pull that grim-reaper across-the-board action.

 

Jim Cramer, TheStreet.com

 

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 no positions in the stocks mentioned.

 

 


More from TheStreet.com

 

6Comments
Sep 21, 2012 12:02PM
avatar
There is very little participation of the public and outrageous manipulation from a dozen wallstreeters. Inflation may spoil the party though.
Sep 21, 2012 11:59AM
Sep 21, 2012 10:54AM
avatar

"We are in the days when the screen is drenched red and you have to go find Dollar Tree and Ross and buy them."- Jim Cramer

 

    Do the exact opposite of what this clown said.  Dump retail stocks and buy commodities and you'll be fine.

Sep 21, 2012 11:54AM
avatar

 

I don't know about the Fed.  They're gearing up for some can kicking.  Understandable.  Nobody wants to ruin Christmas.

 

But then, there is all that money that we owe . . . . what about that?  I suppose we could put more tax on cigarettes and beer.

 

 

Sep 21, 2012 11:05AM
Sep 21, 2012 11:38AM
avatar
"I felt outgunned and undermanned with my rap"

You are soooooo cool mrs cramer.....
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.

123
123 rated 1
262
262 rated 2
480
480 rated 3
651
651 rated 4
649
649 rated 5
629
629 rated 6
616
616 rated 7
496
496 rated 8
346
346 rated 9
111
111 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION9
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
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.