Looking for a Thesis; Day 1 of Big Change: Cramer's Best Blogs
NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- the new theme; and
- the not-so-dumb market.
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
We've Lost the Housing Thesis
Posted at 4:13 p.m. EDT on Friday, June 21
It was another one of those "could have been worse" sessions. But you know what? I think that this was simply a relief rally -- a relief that the interest rate on the 10-year Treasury didn't spike more than we had thought it would, and a relief that China didn't let its banks go bust.
Here's the problem with a relief rally. Now that we are relieved for Friday, we have to get all relieved again every day next week.
On Friday, underneath, we saw the continued unwind of the housing trade. All you had to do was watch Whirlpool
Sure, Whirlpool also has a big Brazil component, but this 7-point decline is all about the big speed bump in the road of the housing highway. When I see this, and a similar decline in Sherwin Williams
What's going to take this theme's place? I have been championing the regional banks, the techs and the industrials, and they did well today. But the stars were the bond-equivalent stocks, and that's unnerving to me, too. I do not know how they can move still higher. They are still up huge, and they no longer have that dividend support now that the rates have moved higher.