Does Anyone Trust This Bounce?

Morning News of Note:

• DEO: Shares of Diageo, Straight Up IF YOU FIND YOURSELF TURNING TO THE LIQUOR CABINET in a faltering market, that's just what Diageo ordered. The London-based spirits giant, with a broad portfolio of booze brands including Smirnoff vodka and Johnnie Walker scotch, has benefited from an upswing in hard-liquor consumption at the expense of beer, especially in North America. (Full Story) BARRONS
• CROX: Retailers feel pinch from Crocs' fame Crocs Inc. headed into the busy summer season selling its brightly colored resin shoes at 900 more U.S. stores than it boasted just months earlier. But it also has lost some Denver-area retailers who say glitches in getting the shoes proved too troublesome. (Full Story) Rocky Mountain News
• GLW: Behind Corning's Big Drop The television manufacturer must convince disgruntled investors that it can survive declining shares and oversupply problems. As a key supplier to the flat-panel TV industry, Corning has taken its share of hits in recent days as some of the biggest makers of those products warned of disappointing results. (Full Story) Business Week
• EBAY YHOO: Ebay to test free U.S. "Skype Me" service-FT: Next week online auction house Ebay (EBAY) will launch a pilot program to test 14 categories of goods, such as real estate and cars, on its U.S. site, hoping to prove its $4.1B investment in Internet voice service Skype was worth it and will boost its share price. The company also hopes to integrate the feature into Yahoo (YHOO) websites. For now, the company will offer the service for free, which will be accessible by hitting a "Skype Me" button
• GOOG: Google-GOOG file size does not matter for video uploads: In a press release today, an executive producer for Beet.TV was at the headquarters of Google in Mountain View, CA and was stunned to hear that Google Video does not limit the file upload size for videos. He also quoted a business product manager at the company saying "Google wants all the world's videos."
• Mad Money Summary: Cramer opened his show discussing the practice of bargain hunting. He suggested natural gas, which has been trading at the lowest ratio to oil that he can remember. His pick in the natural gas market is Carrizo Oil & Gas (CRZO). He did not recommend Cheniere Energy (LNG), though. Cramer then discussed Reader's Digest (RDA), which he believes has hit a near bottom at its 52-week low. Cramer then evaluated companies that are "flush with cash." He said Gateway (GTW) is a bad company that is flush with cash. The three best companies that are flush with cash are Apple Computer (AAPL), Cnooc (CEO) and Schering-Plough (SGP). Sears Holdings (SHLD) and Deutsche Telekom (DT) are also great cash stocks. Cramer then spoke to MGP Ingredients (MGPI) COO Tim Newkirk. Cramer said he likes the company as an ethanol speculative play. In the "Lightning Round," Cramer was bullish on Citigroup (C), ING Group (ING), National Oilwell Varco (NOV), Burlington Northern (BNI), Oceaneering International (OII), Carrizo Oil & Gas (CRZO), Foster Wheeler (FWLT), WCI Communities (WCI), KB Home (KBH) and Sealy (ZZ), and was bearish on E*Trade Financial (ET), Wachovia (WB), Avaya (AV), JDSU (JDSU), Helix Energy Solutions (HELX), Cemex (CX), Honeywell International (HON) and D.R. Horton (DHI).

Market Comments: The market is getting a nice bounce in early trading. Let's just hope it sticks. Yesterday's session looked like we were going to get a late day rally, but it quickly fizzled and the market closed at its lows.

Another indicator that is just now falling into place for this market is the longer-term stochastics. They are now oversold for the first time since October 2005. So in addition to the short-term oversold indicators, and the highly negative sentiment indicators, we now have the long-term oversold condition to boot.

I think we're getting to the point where no one believes the market can rally. That probably means that we will get some strong rallies, just to keep the most people off balance. I put a little money to work yesterday, but would like to see a rally that for once gets followed up with some strong follow-thru. Maybe we can start today.

long DEO, GOOG, GLW