This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer: A Vulnerable Citadel

This post appeared earlier today on RealMoney . Click here for a free trial, and enjoy incisive commentary all day, every day.

Perhaps we will look back at this era and say, "We used to think the VIX was so important, but it ceased to matter. The volatility index was a precursor to a sell, not a buy." My prized oscillator has stayed negative well beyond what I thought possible. Bull and bear has shown a plethora of bears forever. Didn't matter.

That's because, in the end, equities can be converted quickly into cash, especially S&P 500 names, and cash is so king that you would sacrifice any amount of points and performance to raise it.

All weekend I worked like a banshee to find out how "in trouble" major accounts were. We heard from Citadel last Friday that they are actually doing well, that they have cash -- they have debt too, but I guess that doesn't matter to a hedge fund -- and that people want very much to invest in them despite their being down 35%.

I don't know about Citadel other than the fact that all I hear is "genius personified," but funds I know that are down 35% are SOURCES OF FUNDS because no one has come back in this market.

Again, let me be clear, the press has intimated that Citadel is a citadel, that it is rock-solid and that no one in his right mind would challenge Ken Griffin.

I come back with a simple homily: When you are down 35%, they run from you, not to you. The whole purpose of a hedge fund is to hedge, to make money in the bad times -- that's the only way they can charge those fees -- so no one ever "feels great" about a down-35% manager.

Once again he is the exception. He is the best that has ever lived. Blah blah blah.

But almost no one ever comes back from down 35%. Instead, people get the firm's list of holdings and they go to town on it until they break someone down that much.

NOT CITADEL! They are the only ones this would never happen to. Ever.


Or do I protest too much?

Random musings: For a sobering approach to everything in this market, run to Rick Bensignor's piece about the health of the long-term bull market. It is perfect.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here. has a revenue-sharing relationship with under which it receives a portion of the revenue from purchases by customers directed there from

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs