Cramer's Checklist

Monday evening on his "Mad Money" show Jim Cramer discussed a checklist of things that need to happen before the markets start to rally.  I think its a pretty good list so I thought I'd summarize it here.  While I don't know how much the market's already discounting some of these problems, I think without a doubt we will stabilize if folks begin to think some of these issues are at least not getting worse or finalized.  {I'll add some thoughts where appropriate}

Financial Regulation:  Banks, brokers and by extension the market itself needs to see the final bill to understand what it's going to cost financials going forward.  {While I don't remember Cramer mentioning Goldman Sachs, I think a heavy burden will also be lifted once they settle.}

European Banks Stabilizing:  Markets don't want a repeat over there of what happened here.

Unemployment declines:  Last Friday's unemployment number was horrid and it has put significant pressure on stocks since it came out.  {Market needs to get a sense that this is getting better.  Stabilization probably doesn't help.  Market needs further evidence that we're not going to double dip into recession.}.

Oil spill must be stopped:

Market needs to see evidence that China can engineer a soft landing.  {Very important for commodities and their related stocks.}

Euro quits going down. 

Source:  "Mad Money, CNBC, Monday June 07, 2010.

*Long ETFs related to major market indices in client accounts and certain personal accounts. Long ETFs related to the financial markets in certain client and personal accounts.  Long ETFs related to certain markets with exposure to Europe in certain client and personal accounts.  Long ETFs related to China in certain client accounts.  Long ETFs related to certain commodities in certain clients and personal accounts.  Long ETFs related to oil and certain oil related ETFs in certain client and personal accounts.