Wrong! Dispatches from the Front: Cramer Expects More Selling Tomorrow
This is the guist of his story..
What really got things going, what was the equivalent of throwing gasoline on an orderly fire -- if there could be such a thing - was the Barton Biggs' call from Morgan Stanley Dean Witter. Personally, I am not a huge Biggs fan, having seen and heard him be too negative and too emotional too many times. He did not give his brokers a good insight into what the call was to be about and frankly, some of them thought he was going to be bullish, recommending bonds and therefore, stocks in the long run. What a set-up for the bears!
This was the call from hell. The imagery he summoned: Berlin in 1945, the U.S. in 1929, the long-awaited bear market, positively freaked out
everybody imaginable on this call -- and the number of hitters on this call was beyond comprehension.
What he really said was that the world would now slowdown because of the turmoil in East Asia and that a protracted bear market may or may not be beginning. Nobody heard the "may not." What they did hear was that Biggs said the exit would be too small, so get out now.
What happens now? As ugly as it was, we did not get a crescendo. In 89 and in 87 we had stock imbalances, massive trading stops, fast markets, total disorder. I know this will sound amusing to anybody who has just been trading in the last five years, but Monday was too orderly, not enough panic, and it left us with the averages still way up for the year.
Tuesday should be different. Tuesday should see those imbalances and those frantic attempts to get out at any cost. Tuesday we should see real institutional selling by those fearful of losing their whole year's worth of profits. |
