Market forecast: Thick haze for days

With OPEC's surprise decision not to increase oil production, the Senate's vote on debit card fee limits, and Ciena's disastrous earnings, Wednesday's events could cloud the market for a while.

By Jim Cramer Jun 9, 2011 8:52AM

jim cramerthe streetIt's terrific that we regard each day as a new day around here, as in "New day, futures are fine, come on out and play." But we often forget that there was damage done the other day, damage that isn't repaired by the sun going down, the moon coming up and then the sun returning to the horizon.

 

Wednesday the damage was horrific. I don't know a soul who even thought that OPEC would do anything but try to figure out how to make sure alternative energies like solar or oil sands or biofuel would be priced out by $80-$90 oil, long thought to be the price point at which alternatives get dicey.

 

OPEC always seemed to have an economic imperative: How to make the producers richer and keep consumers addicted. It used a drug dealer motif to do so.

 

But Wednesday we saw that some OPEC members don't care about stifling alternatives. They care about stifling "the West." They care about showing the developed nations that they are in charge. They care about hegemony!

Oh, doctor, not what we wanted. But we act as if, OK, that's fine, we can take lower oil off the table and still rally.

 

To which I say . . . HOW? How is that going to happen? Give me a reason that should happen when we are all getting around to the idea that consumers are slowing spending because of the tax of oil?

 

Doesn't matter. People want to just brush it off.

 

What else did they think won't matter today? How about the Senate and banking? Many people actually thought the government was done being tough on banking. They were wrong! It's worse than anyone thought, where another source of income, the debit card swipe fee, is being gutted on behalf of consumers -- or, to be more accurate, retailers. You can't yawn about this stuff, because it is ideological, for heaven's sake!

Finally, we had Ciena (CIEN). Did anyone check that out? That earnings disaster that it pretended was terrific? That colossal miss on all metrics that the company told us was a total win?

 

Disastrous. It was so bad I couldn't figure out how much was poor execution, how much was demand and how much was a slowing in the world's telecommunications spending.

 

All in all, Wednesday was a day that can't be contained in a 24-hour period, put in a box and left in the corner. It is front and center.

 

And it will be tomorrow, too. Next week, even. In fact, it's the environment we are in. It's like smog. Doesn't change with the dawning and setting of the sun.

 

At the time of publication, Cramer had no positions in the stocks mentioned.

 

Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.

 

Learn how to follow Cramer’s trades for his Charitable Trust.

 

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5Comments
Jun 9, 2011 3:16PM
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I wish I would of "gone away in may"  I wish I would of not listen to the Pundits about Citi...saying it's a buy, when they announced a reverse split.  "People should run, not walk when they see a reverse split....".  80% stocks 20% cash is to risky.  20% stocks 80% cash is where we need to be!

 

Jun 9, 2011 12:10PM
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To the nameless previous poster who opined:

"The whole silly monetary game is a waste of time and counter productive in the post industrial age. Money should be abolished and thrown into the dust bin of history like the buggy whip"

Please do not throw any unneeded money you may have into the dust bin of history. Instead, send me the money you seem to no longer need, and I will dispose of it for you. After sending me the money, you may beam up, or join with the great spirit in the sky, or whatever it is you do in your world. Thanks!
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ROFL,

And the fact that Bernanke the buyer of last resort of US T-bills has been told by our Chinese masters not to print anymore money to cover US debt has nothing to do with things???

This is so funny. We are trying to run a modern world on monetary policy set up centuries ago.

The world is in trouble for one and only one reason the Central banks of the world trying to economically subdue world governments by getting them to right laws that so not tax the super rich and spend more money than they have forcing the governments to borrow the same money the Central banks saved their super rich friends. And by pumping trillions of dollars into their super rich friend's bank accounts to make them super rich.

The whole silly monetary game is a waste of time and counter productive in the post industrial age. Money should be abolished and thrown into the dust bin of history like the buggy whip.
Jun 9, 2011 3:48PM
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Jimmy Boy you are the dark cloud over the market.
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Please do not throw any unneeded money you may have into the dust bin of history. Instead, send me the money you seem to no longer need, and I will dispose of it for you. 
When the US defaults on it's debt payments come Aug 2 and the value of the dollar falls to 100 dollars to 1 mexican peso. You will have wished you had converted your useless dollars to pesos or any other currency. 

You are still trapped in the monetary trap the Casa di Medici put into motion in the 15th century. It's time to break out of the past and create a much better future for everyone. You are still their economic slaves 500 years later.
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