creamer says you should buy calls.
A Different Kind of Selloff
By James J. Cramer
04/09/2003 02:59 PM EDT
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You could feel the rollover. "We don't care about no stinking statues." Or: "But wait until you see how bad Yahoo! is after the close." Or: "Hey, don't forget SARS!"
Aha, though: We actually do care about the statues, because after we beat them in Tikrit and Mosul and Kirkuk, many of the boys will be coming home. People will feel better and spend more. We can't get wildly enthusiastic; that will bring out sellers every time. Because that's where we are in the bear: Nobody is going to let the futures take us up without selling.
However, I remain convinced that the selloff will be buyable and light, as opposed to sellable and heavy.
People keep emailing me and asking me if I know something they don't, maybe about a Fed cut -- oh, come on! I'm simply saying that a skeptical wall of worry we scale over time is a heck of a lot better than a short squeeze we have to sell into, and sell into aggressively if we're going to make any money.
What would I be doing right now if I were at the hedge fund? Covering some shorts, picking at stocks like Pepsi that just got upgraded, and waiting for Yahoo!'s earnings, which, by the way, will be darned good. Be careful of that recent convert, though! And don't forget, the sell window always opens after they report. |
