Cramer: A much-needed breather
Jim Cramer | [email protected]
Earlier I penned a piece about froth, and the market heard it and got less frothy yesterday. Just kidding. But we did see some profit-taking at last in some of the stories that I have been worried about. The banks at last sold off a bit. Good, the numbers are too high.
The mortgage-related plays, such as Radian and Genworth Financial, finally seemed to react to the decline in mortgage applications. I still think they will come back because the Federal Housing Administration is withdrawing from writing those policies.
The transports finally dropped after the gain in oil--yes, FedEx can go down too. And even the hottest of the hot, Mercadolibre and Netflix, can get hit on press scrutiny (great job, Herb Greenberg) and downgrades (thank you, Morgan Stanley).
This market needed a break. This market needs to cool. This market needs to tamp down the froth, especially ahead of a Fed meeting.
Could today be the beginning of a mild correction, like the one we had in July after we broke the eight-day streak? I bet it is. That's what's necessary to make it so that no matter what the Fed does next week, we won't get hammered.
Because otherwise we certainly will.
Disclosures: Cramer's charitable trust has no positions in the stocks mentioned.