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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST
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To: kemble s. matter who wrote (98279)2/12/1999 5:39:00 PM
From: Nick  Read Replies (1) of 176387
 
Wrecking the Orderly
Market
By James J. Cramer

2/12/99 4:33 PM ET

Gee, you would think that if everyone knew
something it wouldn't happen. But sure enough,
these "bad actor" mutual funds came in right on
sked at 3:30 and blasted things down in the last
few minutes because things were down already.

We have by now all heard the denials. We have
heard funds say they aren't responsible. To which
I say, "Do you think anybody is going to come out
and admit that their selling is destroying the
market?"

In 1987 we had to endure endless denials from
portfolio-insurance folks that they weren't
wrecking the orderly market. Finally, they just went
out and destroyed it. That was the Crash of '87.

Only after that did we discover that the portfolio
insurers disproportionately dismantled the market
on that day. These new deniers of their power will
have to rack up some NDX-like crash before they
will quit. As long as they are out there with their
mindless 3:30 accentuations of whatever might
have happened that day, we will be stuck with
these "biggest one-day declines and advances"
stories that you keep hearing about.

The propensity for the advances, well sure, if you
are long that's cool. But the declines? All I can tell
you is now that I have discovered this pattern I
fear the last half hour of these down days.

Those who think the NDX can handle rapid selling
or buying in the last half-hour by a couple of
concentrated funds simply HAVEN'T BEEN IN
THE BUSINESS LONG ENOUGH. Personally, I
hope they don't get a chance to be in the
business long enough. But I guess that is up to
their clients, not to them.

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