I'm Sitting on My Hands
By James J. Cramer
8/12/99 8:56 AM ET
More squeeze ahead. The bond market's benign reaction to stronger-than-expected retail sales, coupled with Home Depot's (HD:NYSE) better-than-expected report, could ignite things again.
When bonds go up (and interest rates down) on bad news (stronger-than-expected numbers), that could signal that they have overshot where they are going to go.
For me, I am torn here. I want capitulation. I want crescendo. Maybe that will be just plain too easy. Perhaps the fact that 14 deals were canceled this week amounts to a better clue of capitulation than the panic selling that I have been looking for. I want to buy, not sell. But it may turn out that it is best to do nothing.
I am about to call my partner, Jeff, still on vacay, to say, "Heck, the bonds should be down but they are not, and maybe everybody is too short bonds, too."
Jeff's take -- and he is IMing me now -- is that if Producer Price Index is good we will not get capitulation. He sends this to me in big cap letters: WAIT TILL 2:30 TO DECIDE. DO NOTHING AT THE OPENING
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