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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (15407)	11/17/2002 2:52:58 PM
From: t2	Read Replies (3) \| Respond to of 30712

S&P 500 Level Works Magic on Bears (interesting observations--agree 100% with his logic) S&P 500 Level Works Magic on Bears By James J. Cramer 11/15/2002 05:05 PM EST Click here for more stories by James J. Cramer We ramped, and we ramped for the same reason that I have come to detest at times: the technicians. We got close to S&P 500 910. At 910, lots of people who fought this rally every step of the way come out and become bulls. That's right -- can you believe it? There are people out there who have pooh-poohed and trashed this rally for more than 100 SPX points but who get bullish if we exceed the Standard & Poor's level. Heck, that's probably the signal to don the old bear suit and get negative. We've had quite a run. Who knows how much of it is because of expiration, how much is capitulation and how much is decapitation! I play it differently. I think that being bearish for the last 100 points was unfathomable given how bearish everyone else was in the vernacular of the bear/bull number that comes out Wednesday. Now we are at more than 50 bulls on the Investors Intelligence poll -- we were at 28 bulls just a couple of weeks ago -- and I don't know how many short-sellers are left alive. The doctrinaire followers of people who care about levels have no choice but to buy now. Their nutty buying will take us to levels where, like Dell (DELL:Nasdaq - news - commentary - research - analysis), we get too rich. So even though supply is not heavy, and even though we are in a seasonally nice spot, I continue to think that any naked, knee-jerk move over SPX 910 has to be bet against with the ammo you accumulated into the rally being the stuff that needs to be jettisoned. Stay tuned!