Its earnings season--market ready to decline

After a 37 point drop in the Dow and 10 points in the s$p cramer says stocks are on sale. Hahahaha. Stocks are up hundreds and hundreds of percent and he thinks this is a pullback.

Cramer: Stocks Are on SaleBuy, Buy, Buy
CNBC.COM_|_January 12, 2010_|_8:22 PM EST
“This market needed a breather” from its big 10-month run, Cramer said during Mad Money, and on Tuesday “Washington provided a terrific pretext.”

News that the White House wants to tax banks was just what Wall Street needed to start a sell-off, one that took the Dow 37 points lower and cost the S&P 500 almost a full 1%.

The US economy can’t recover without the banks, Cramer said, and President Obama’s renewed focus on the sector — for unpaid Troubled Asset Relief Program loans and excessive compensation packages — makes its tenuous situation even more tenuous. Americans need access to credit, and taxes would further diminish an already reduced supply. Investors saw the potential danger and took the group down accordingly.

But make no mistake, Washington provided a bit of a convenient excuse to take profits. Let’s face it, the market can’t surge 3% a week without an eventual pullback. And that’s why the materials and agriculture companies declined right along with the banks. Still, Cramer emphasized that this was a typical pause in an otherwise bullish environment for stocks.

For one thing, he saw a silver lining in Alcoa ’s<cnbcquote><![CDATA[(AA)]]></cnbcquote>more or less disappointing earnings report : “some pretty amazing cash flow numbers.” Cramer predicted a big 2010 for the company, saying a turn is coming in Alcoa’s key markets. He thinks AA is a buy.

Also, those materials stocks — the coppers, steels, and mining-equipment players — fell because investors feared a slowdown in China . But Cramer is OK with that. He’d rather see the country grow at a manageable pace instead of one so feverish that the government steps in. A complete shutdown by the Chinese Communist Party is a much worse possibility.

Today also saw a pullback in corn and oil , and Cramer’s all right with that, too. Inflation can kill a stock rally, so a softening in commodity prices is sometimes welcome.

Lastly, the Nasdaq, up 44% in 2009, also needed a rest . A continued move like that would too closely resemble the dot-com bust of 2000. Better for the index to pause now than end up giving all of those gains back.

“The market’s throwing a sale,” Cramer said, and investors should take advantage.

 

I agree 100%. There is a correction coming very soon. It will be sharper than people expect. There is little upside left in this market.

And here comes expiration and earnings. S&P will be under 1100 very soon. Easy money.

 

retailers report later in the season - since we are a 'shoppers' (debit, credit) economy I bet (a beer) 4Q retail reports move the markets if unexpected either direction - but not betting my money on anything

 

we will reach S&P 1250 by march

there is just no negative news available to drop the markets, there is no panic at all!

 

You missed it, the decline was Tuesday am, the correction is over.

 

Respectfully, I didn't miss it, i'm actually ahead of it. It's coming.

 

That's Mister Rowshan to you!

Rennick out

 

Doubt we'll get to 1200 by March, so forget 1250.

 

Retailers have rebounded too much too quickly and are the most vulnerable to a correction.

 

Last year market moved as a whole wave down, up
Not this year.
This year is the year of "active management", remember?
Traders are waiting for cheaper growth and dividend stocks.
I think pull backs will be bought and shallower but up surges
will be met with profit taking.
That sounds like a trading range.
But the Fed will be the key so
2nd half of the year could more volitile.