This Day On The Street
Continue to site
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

Pattern That Plagues the Market; You're Investing, Not Running the Company: Jim Cramer's Best Blogs

What people don't realize is that politicians are all Grinches, on both sides of the aisle, and they aren't going to give us anything good because neither party cares about business. Think about how everything from Washington has played out for years. Take this last fracas. If you recall, we had the last Fed meeting and it produced a spectacular rally as the Fed said it wasn't going to taper.

Then, literally, two days after that great rally, we began to hear about how the possibility of a government shutdown and a debt-ceiling wrangle. At first, we ignored it because we figured that the president and Congress wouldn't let any shutdown go on too long and we would never default on our debt. But then it dawned on us that the hatred was so thick between some of the GOP and the president that perhaps, just maybe, the shutdown won't be solved quickly and the debt-ceiling tussle could be far more serious than we thought.

Then we actually get the government shutdown, which hammers the market. And then we got the second punch: the debt-ceiling fight brinksmanship, where it was clear, at least to me, that we had to go down to the last hour before a deal could be reached on either. It was so patently obvious to all but the Santa believers that the issue wouldn't be resolved until right before Armageddon. But the market didn't look at it that way and it kept trading down, bottoming at a 6% decline from the top.
[Read: <a target="blank" data-add-tracking="true" href=""><em>Technology Becomes Labor-Creating, Not Labor-Saving, and Women Love It</em></a>]

And then we got the deal.

Nothing's new to that rhythm. In fact, if you look at the charts it's obvious what we keep getting: a big run in the stock market courtesy of better-than-expected earnings and then a big sell-off when Washington in any form -- president, Fed, Congress, taxes, whatever -- gets back on the agenda. Then that's resolved and we get another run when Washington recedes again.

Now we've had our break. With the employment number tomorrow morning the chatter and the pain should begin anew and you can do one of two things: sell some stock because the taper talk will run thick, or the recession chatter will take over. Or just strap yourself to the mast and ignore the sirens.

Frankly, I would split the difference. Sell some tomorrow and get ready to buy it back when the taper talk recedes again.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,740.63 +79.92 0.45%
S&P 500 2,057.14 +6.51 0.32%
NASDAQ 4,736.1550 +19.0610 0.40%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs