On Losers on S&P, coal...
JJC:    Coal is (an) export. I mean, just the other day a Georgian judge denied Dynegy Inc. (DYN) and LS from being able to build a coal plant... We're not building coal plants in this country... we don't have the right carbon dioxide regulations... so we export a lot of coal... And I think that a lot of people are saying, well wait a second, with the ECB raising rates, maybe we're going to slow our exports of coal... Apparently, coal prices are dropping in South Africa, some coal prices dropping in Europe... If you export it and you are getting less, then obviously the momentum is coming out... There's also a concern, therefore, that steel is not doing as well... I see a big rotation into the Procter & Gamble (PG)'s, Pepsi (PEP)'s, Bristol-Myers Squibb Co. (BMY)'s... That's because the rest of the world plays, which have attracted a gigantic amount of money, seem to be right now, being deflated... I'm not sure whether that's right or not... But the rotation isn't earnest into the DRG, the drug stocks, and to Pepsi, which is having a better move than it has in a long time... Even Coca-Cola (KO) is going up, that's been a hard stock... These are all just giant sector rotations... It is not individual stocks... not controlled.

I think that you're killing the leadership, that tends to happen at the end of a big selloff... By the way, I'm seeing some news there about Lehman Brothers (LEH), I can get to that in a moment... But I think that the end of a big sell off they take out the last ones... They take out the fertilizer stocks, they take out the steel, they take out the coal... That's momentum, momentum comes out of there, they come down, then they recharge...

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On Lehman Brothers (LEH) issuing stock to employees to retain talent...
JJC:    I mean, I've seen people saying, no... sign of no take under... I never want to criticize what an interpretation of that but I think that LEH is not doing well and I think that they want to retain employees... And I wouldn't read anything else into it other than they're trying to retain employees... You know, I don't comment on the rumors... Not that I'm a dignitary... I will comment on this: There's no earnings power at LEH, okay?... There's no earnings power, so what, you know, you want to own a stock that has no earnings power, be my guest... It's like General Motors (GM), no earnings power... I don't want to own any stock that has a questionable earnings power portfolio... Well, you know it's very interesting... You know, this is a market where we're seeing some bottoming in financials... LEH, Washington Mutual (WM) has bottomed... I know that John Najarian over at Fast Money has been saying that... So, we're seeing money rotate into losers... drugs, financials, and out of winners... That's pretty much of a regular process, and we always try to then find a reason for it, and in this case, we say that the ECB... But I respect the idea that momentum is cool for the moment, people going in for the value. Yeah, it's a terrible market... I mean, you're here, I mean, our market's awful... I say it every night on my show... We have been picking Medicare stocks to look at because at least the government is a payer... It's a horrible market, look, we can't really...

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On Healthcare stocks, and Unitedhealth Group, Inc. (UNH)...
JJC:    You know, UNH was a very heavily shorted stock... that pre-announced a bad number and it didn't go down because so many people were expecting that... I would recommend selling that nine ways to Sunday right now... I think that, if you really like that healthcare, health maintenance business, you really should go into a Humana Inc. (HUM) or a CIGNA Corp. (CI)... But, UNH, you just a great opportunity to sell it at a much higher price than you had any right to be able to... Sell it, just sell it... They have major, major problems... My friend Cheryl Scolden at CRT Capitol has just told people to get out of this for literally, 100% when it was at $50... And I will reiterate her view, which is this thing is extremely overvalued and you got to sell it.

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On Retailers...
JJC:    Horrible... There, I have only been recommending a handful of stocks, Costco (COST), TJX (TJX)... You mentioned the Family Dollar Stores Inc. (FDO), I mean... Look, we're in bad shape in the country right now and it is quite obvious... The stocks are reflecting that right now... Where we have been putting money is in the rest of the world... That could be slowing... When we're in bad shape people really reach for Bristol-Myers Squibb Co. (BMY), they really do reach for Merck (MRK)... We hadn't been seeing that, we've been seeing the money go into exporters... It's, look, there are a lot of people are calling for a bottom, down 20%... All I can say is that, if we were not oversold, and if there were only 31% bowls, and if we not at 9.6 on the S&P oscillator, we'd be down like 500 points... But we're being prevented from being down because of pessimism.

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