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Buyers, Walk Away Now

02/28/07 - 03:03 PM EST

Jim Cramer

This column was originally published on RealMoney on Feb. 28 at 2:25 p.m. EST. It's being republished as a bonus for TheStreet.com readers. For more information about subscribing to RealMoney, please click here.

Telling times. Soon the companies that have been in there buying back stock are going to step away. That's what they do at the end of the day. They can't control the closing price.

Soon some of the hedge funds that are short the market will go into the ETFs with guns blazing, trying to take the shooting match down.

Which is why it is now time to walk away if you want to buy. You have done your buying for the day unless they crack it in the last half hour.

Volatile markets require different rules from the ones we've played by for a long time. You need more discipline. You need to say, "Oops, that was a called strike; I didn't even take the bat off my shoulders, can't swing now."

And you have to wait for the shorts to make havoc.

They will; you can count on it.




Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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