What should short-sellers be looking for? Simple: secular decline shorts where there are accounting risks. Or competitive nightmare shorts where price-cutting is endemic, making the numbers too hard to make. Or stocks that are flying high, not low, even as the businesses aren't all that well rung, Think the bad retailers.
Shorting when people are negative, shorting where everyone else is shorting, can lead to remarkably bad results. Shorts take much more homework than longs. Shorts must be discovered early. Shorts require persistence.
But most importantly, shorts involve originality. Owing to the powerful logic of a bull market, they require ingenuity. Anything short of that and you might as well have a Joy on your hands.
And there will be no joy in shortville today.Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long CELG. Editor's Note: This article was originally published at 7:25 a.m. EDT on Real Money on June 6.