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%.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV