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Cramer's 'Mad Money' Recap: Hedge Funds in Agony (Final)

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NEW YORK ( TheStreet) -- "Let it ride," Jim Cramer said on his "Mad Money" TV show Tuesday, as he told home gamers that they don't need to be like a hedge fund and try to game the market every day. Instead, he said, sometimes doing nothing works just fine.

Cramer said that hedge fund managers are like sharks in that they need to be in constant motion in order to stay alive. There is daily pressure to turn a profit with every trading session. And that leads to the endless buying and selling of the S&P 500 futures on every headline, every tidbit of news out of Europe, out of the U.S., out of China and out of pretty much anywhere.

Cramer explained that the hedge fund managers have been playing it safe as of late, shorting the markets, betting that worries out of Europe and debt concerns here at home would flush out the retail investor and send the markets lower.

But he said no one expected to hear about a possible U.S. debt deal today, nor were they prepared for Apple (AAPL), a stock which Cramer owns for his charitable trust, Action Alerts PLUS , to report blowout earnings so good it made the analysts' heads spin.

Sometimes the good news can outweigh the bad, noted Cramer, and that's why the market was able to surge higher, as the hedge funds were forced to admit they were wrong and cover their short positions.

What's all this mean for the individual investor? Cramer said nothing at all. He told viewers to not try and game the market every day. "Doing nothing is fine," he said. On up days you'll make money and on down days you'll lose a little. Sometimes it's best to sit back and watch and be ready to pounce on great opportunities as they arise, he said.
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