Cramer's statement:he is saying that the Hedge Fund managers who have under preformed this year by being short or at least not long need one last stab to make a couple of points before the year ends. The winners have the farthest to fall, therefore, the most money to be made on the short side. And with light holiday volume it is easier to sell them down than buy them up. He is saying that these guys push them up in the after market, push them up in the futures and premarket all of which have light volume, then sell them down in the regular market. They use fear and greed as tools. It makes sense to me. I can't for the life of me figure out why Apple would sell down so much when the company is coining money. Maybe those guys who put the $100+ price targets on Apple need to get off the ski slopes and back in their offices and start talking up this stock. Anyway, I have soften the blow by trading in and out of some puts, but not near enough. Still very long Apple.
Pin action is the fear and greed part. When some people see their profits going away for the year they sell to capture that profit.
I have been a follower of Cramers for a long time. He is a very smart guy and can make you plenty of money but you have to know how to use him. If you want to buy the stocks he recommends you have to only buy the ones on which he is very, very, very bullish. For example, Shld, Goog, Aapl, Gs, Ati. Anything else, as he says, you need to do you homework. |
