A 2% drop in the markets yesterday followed by a small rally today and hes screaming that the "CORRECTION" is over. HAHAHA, I had to post this stupid opinion, how can anyone think that what we saw was a correction, if that was the correction and were headed up another 10-20% from here I will take every word from cramer seriously from now on. However you have to be a fool to think the correction is done and behind us, if anything this market is going down a lot further than what most think. Cramer: Is the Correction Over? Posted By:Tom Brennan Cramer was right about the most recent sell-off: He said it would be shallow, and it was. Note the Dowâs 83-point rally on Tuesday after a brief 3% dip as vindication of his call. The bears must be stunned and confused â flummoxed even. Just yesterday they could have pointed to what seemed like a long list of negatives for the market: a weakened consumer, no back-to-school season for retailers, techâs stalling out, Chinaâs disappearance, credit-card defaults, cash for clunkers cannibalizing what little money people had to spend on other items and cars in the future, and President Obamaâs plans to âsocializeâ medicine. Today? Target and Home Depot joined Kohlâs and Walmart to say that sales and profits are getting bigger. Walmart and Target, âthe two biggest back-to-school stores in the country,â as Cramer called them, both said they were encouraged by this season. Then thereâs tech. Apple [AAPL 164.0056 4.4156 (+2.77%) ] closed $4 higher on Tuesday, as the iPhone seemed to grow in dominance in Canada, Europe and Japan. And the revolutionary handset hasnât even reached China yet. Cramer also mentioned the good quarter that Hewlett-Packard [HPQ 43.96 0.85 (+1.97%) ] reported after the bell. Also, China has reemerged, the market closed higher, and oil rebounded to $70 a barrel. Cramer said he thought the Middle Kingdom was pickling, or haggling for raw goods, and thatâs why it seemed to disappear. The country carries so much weight that it can scare commodity producers â the Potashes [POT 93.72 2.60 (+2.85%) ], Freeport-McMoRans [FCX 60.47 1.11 (+1.87%) ] and BHP Billitons [BHP 61.83 1.63 (+2.71%) ] of the world â into lowering prices. The same strategy worked back in 1957 when China strong-armed a better deal out of rubber producers in Malaysia and traders in Singapore. The last three cornerstones of the bear thesis have fallen apart, too. Citigroup [C 4.14 0.14 (+3.5%) ] and American Express [AXP 31.69 1.30 (+4.28%) ] announced that credit-card defaults are going down. GM is putting more people to work building cars, and Fordâs [F 7.64 0.27 (+3.66%) ] raising production for 2009, neither of which would happen if cash for clunkers wasn't working as intended. And the public-option insurance plan that Obama wanted seems to be off the bargaining table. Thatâs good news for Unitedhealth [UNH 28.18 -0.30 (-1.05%) ], Aetna [AET 29.58 -0.05 (-0.17%) ], Cigna [CI 29.47 -0.21 (-0.71%) ] and Humana [HUM 35.00 -0.53 (-1.49%) ]. These events turned bears back into bulls, Cramer said, and itâs the reason the Dow rallied today. âEvery argument the bears had for selling,â Cramer said, âhas been totally rebutted by this great market.â
Still arguing how the market must go down because the economy is in the dumpster as you're looking like a deer in the headlights in the process?
That's why the smart bears waited for todays pullback to short. Sold a bunch of Sep 165-180 call spreads. Selling QQQQ callspreads by the end of the week. See how this one works out cramer.
There's never a sure bet in this market. Granted fundamentals are no way to trade, I think that's quite a naive statement.
While I don't share the opinion that this was anything resembling a correction, whatever you want to call it we're oversold, and have been since the close last week and are still oversold today.