JY,
I am more embarrassed by Cramer's "linear thinking" which leads his article.
As compared to short positions: If a stock deserves to be a good short, it could eventually trade zero, it does not mean that it is a short position in super bullish times, a fact many die-hard shorts missed last October and later.
Likewise, Cramer states (in restrospect, of course) that selling was the dumbest last October , when the fed had the means to turn around the market.
But what I'm missing is that Cramer asks himself whether a further upswing is probable in a likewise tightening (and no longer deflationary) market environment.
It seems that no one has noticed that the market is about 30% ahead of last years October levels, an altitude hardly warranted by improving earnings (or the lack thereof).
That said, at least a wait & see attitude may be warranted, in contrast to ever-parroting "buy the dips, buy the dips".
I remember the fine print of AGs statements very well:
Last year, Greenspan stated, roughly: "Assets have been selling off, regardless whether good or bad. .."
This year, he roughly stated the opposite, without appealing to the cheapness of "some" assets.
is.
As a result, I think that the dow could fall back to its major 7.7-8.000 support, after testing 9.300 |
