Stop Trading: A "Horrible Market"
You know it's been a bad Wall Street session when Cramer starts off his "Stop Trading" segment with the blunt comment, "This is a horrible market." He goes on to list the various factors: insurers, banks, retail and minerals (he didn't even mention the autos!).
He had hoped that the day's early rally, due mostly in part to Home Depot and Hewlett-Packard's better-than-expected numbers, would gain momentum over the day. There was a slight final-hour rally, which put the Dow up 1.83%, but not the big movement Cramer wanted to see.
Turning to retail, Cramer recalls a saying of his father, who has been in that business for years: "Never go into retail." It is an "immensely difficult business" and, when things go bad, becomes a "different animal." Specifically, he discusses Lowe's and Sears, two large retailers that are good indicators of the sector.
As he has in the past few days when asked about oil, Cramer points to ExxonMobil as his "tell" for the industry. He admits he was wrong earlier when predicting a bottom, saying it turned out the "stocks were right ... and beat the hell" out of him. Looking at Exxon now, Cramer points out that it has stopped going down, which may be a strong indication.
Jim Cramer's charitable trust owns Hewlett-Packard (HPQ).
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