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Jim Cramer’s Plan for This Market, Part 1 — Find What's Really Working Now By Jim Cramer | Oct 26, 2015 | 04:46 PM EDT

One goal you must always have is to figure out what's working so you can assess a medium-term worldview -- my preferred vision.

The late great Mark Haines used to chide me as the Reverend Jim Bob from the Church of What's Working Now. But he understood that my goal, attained specifically by looking through the charts every weekend as he did, was to get a sense of where the market's head was.

Despite what the averages are saying, the charts are, on the whole, pretty negative about most companies' stocks. And the rolling bear market thesis continues, as I will demonstrate in a moment. But what the market loves -- and I mean loves -- is so stark right now that I can't help but go over the obvious darlings and try to draw conclusions from them.

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Let's start with a sector so beloved that it takes your breath away: Consumer packaged-goods stocks.

Must Read: 4 Big-Volume Stocks to Trade for Gains: Must-See Charts

The strength in stocks like Altria, Campbell's, General Mills, PepsiCo (PEP - Get Report) -- a total horse -- Coca-Cola, Hormel, Mondelez, Smuckers, McCormack Spice, Tyson, Kimberly-Clark, Clorox, Kellogg, Philip Morris, Unilever and even Procter & Gamble and countless others too numerous to detail, is the most blow-away I can recall, with many of these stocks so extreme in their moves that you have to expect a bit of a retreat.

Still, what does it say? I think there are several themes at work with this move.

First, many of these companies pay dividends and the bets being made on these stocks remain income oriented. If the Fed were to move, many of these would probably get hammered. But these are all slowdown stories and no one seems to doubt that the economy has gotten soft. Plus, there is so much gross margin gain right now from the downfall of commodities, courtesy the slowdown, that all of these companies are benefitting. But they rarely flag the positives, in part because I think they are ephemeral.

But the stock market is judging that the commodity depression will be longer and lower. Another side note: these companies had been considered vulnerable to the strong dollar. One has to believe that either...


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