Jim Cramer's Best Blogs

Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

• mindless selling,
• the end of crippling fear, and
• a much-needed breather.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.

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I'll Never Understand the Mindless Selling
Posted at 9:21 a.m. EDT, May 5, 2009

Where are the sellers? Has anyone seen them?

Where are all of the people who sold those coal stocks like Arch (ACI Quote) or Cliffs Natural (CLF Quote)? What happened to those endless offerings of the natural gas stocks? Will they come back after that crummy quarter from XTO (XTO Quote)? Or does it even matter anymore? Someone continually banged out Intel (INTC Quote) between $12 and $15. Did he finish? Where did these people go?

I have often wondered what the "book" of the sellers looks like. Is it something like, "Sell 300,000 Intel every day?" Is it, "I am a seller of Cisco (CSCO Quote), 15 low," and they sell it every day until they are done and they don't even know they are part of the problem? Why don't these sellers let anything lift?

Look, it is one thing if they are margined sellers, if they have to sell. But it is another to just sell relentlessly until you are done, as was the case with Las Vegas Sands (LVS Quote) and MGM (MGM Quote), which are now upgraded this morning by Merrill Lynch after a quick double. What was the need to bail when those stocks were at low single digits? Did someone have an "under $5" charter where they had to? What was the point? They couldn't look at their P&Ls anymore?

Take Jones (JNY Quote) and Liz (LIZ Quote). Nothing new was happening except positives as they languished in the low single digits. And then they fixed their balance sheets, and it still didn't matter. Who was selling at $3 and $2? What was their point? I would love to know the answers to these questions, because they are what's wrong with a momentum market. They simply keep selling until they have sold it all, and then they look like total dopes.

Take right now in aerospace. There will be sellers in Boeing (BA Quote) today like they were selling BE Aerospace (BEAV Quote) yesterday and no doubt TransDigm (TDG Quote) today because of its "low end of the range" report. But I think there could be some significant gains in orders next year for Boeing planes. I also think the defense part is on fire. Balance sheet is good. Yet sellers come in every day. They will finish, and this stock will pop.