Bull Market Somewhere - Cramer's Stop Trading! (9/8/08)

Includes: FMCC, FNMA, OIH
by: Joan Wickham

Recap of Jim Cramer's comments on Stop Trading! Monday September 8.

Bull & Bear Markets - Oil Services HOLDRs (NYSEARCA:OIH)

“I think that tech got buried alive with the rest of the world,” Jim Cramer said. Cramer, assumed at the beginning of the summer that tech would rally and he was not alone. But tech gets more revenues from overseas than other industries, and “it's a rest-of-the-world bear market.” As investors know there is a bull market out there somewhere and vice versa. “The bull market is in domestics,” Cramer said. “Any domestic is up huge today.”

In particular, the bull market is in domestic retail. The Oil Services HOLDRs index that Cramer uses “is trending back to where it was in 2006. “I frankly find that hard to believe,” he said, but if it's true, gasoline's going to be $2.25. That, coupled with house-price stabilization, could lead to the return of the consumer.

Bailing - Fannie (FNM), Freddie (FRE)

Addressing the Fannie and Freddie bailout, Cramer said: “What worries me is that there are so many people that are saying this didn't matter.” A bank such as Citigroup “should be thinking, 'OK, let's price some merchandise. Let's get our balance sheet refinanced.'” he said. “Many of the banks that don't have Fannie Mae preferred stock are doing great today.”

Seeking Alpha publishes a summary of Jim Cramer's stock picks every day including: Mad Money Recap, Lightning Round and Stop Trading!

Get Cramer's Picks by e-mail -- it's free and takes only a few seconds to sign up.

Seeking Alpha is not affiliated with Jim Cramer, CNBC or TheStreet.com