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

Jim Cramer: On Foolish Knee-Jerk Reactions

We even saw it with Merck (MRK) in premarket trading, too. Taking the other side of the buyers there, enthused by an earnings-per-share beat, was like taking candy from a baby, because the revenue was weaker than expected. Plus, any cursory look at the release told you that the much-vaunted diabetes franchise, a big growth engine for a company without a lot of engines, had declining sales. That was a total shocker.

Sure, there have been plenty of instances when it's been worth beating people to the punch. I have seen times this year when so many people had been short the stock of a company with good news that sometimes, psychologically, it was just worth it to take some in when the shares were up a bunch of points. The possibility of a monster squeeze that can wreck a month, after all, is always on the table.

For the most part, though, it has been a stupid thing to do. And, for the life of me, given all of the metrics that now determine what happens with a stock, many of which you do not even hear about until right before the question and answer session, it's often more worthwhile just to take the other side of the trade.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long AAPL and ETN.

Editor's Note: This article was originally published at 6:51 a.m. EDT on Real Money on Oct. 29.

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 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs