RealMoney.com's MIDDAY UPDATE
July 10, 2000
Market Data as of 7/10/00, 12:01 PM ET:
o Dow Jones Industrial Average: 10,655.42 up 19.44, 0.18%
o Nasdaq Composite Index: 4,009.51 down 13.69, -0.34%
o S&P 500: 1,480.39 up 1.49, 0.10%
o TSC Internet: 799.18 down 7.93, -0.98%
o Russell 2000: 529.49 up 1.27, 0.24%
o 30-Year Treasury: 104 29/32 down 14/32, yield 5.894%
In Today's Bulletin:
o Wrong! Rear Echelon Revelations: A Bull-Market Site
Market Features: Solly's Tech Bears Walk in Blodget's Bullish Footsteps
Making big calls brought him fame and fortune but will the same style work for analysts on the downside?
SiliconStreet.com: Out and About Part II
Radio silence on Idealab!'s premature IPOs, and figuring out how to play the wireless Web.
Internet: Yahoo! Numbers Should Impress, but Expectations Loom Large
DoubleClick's report next week should be a better indicator of where on-line ads are going.
David Kurapka: Of Rising Suns, Closed-End Funds and Red Sox Pennant Runs
Answering reader questions on investing in Japan and finding key info on international funds.
Wrong! Rear Echelon Revelations: A Bull-Market Site
James J. Cramer
7/10/00 10:34 AM ET Did anybody read that puff piece about iexchange.com in the Heard on the Street column? I have been going to that site lately and, frankly, I think it is a bull-market site. I know that it has the rich and powerful backers that all sites seemed to get during that frenzied period. But as bad as you may think Wall Street research is, at least there is some rigor to the process. The folks who issue reports from Goldman and Merrill and First Boston have seen some cycles and have committees that have to buy into their recommendations. They can still produce some shoddy research, and, periodically, some research that is at the behest of the investment-banking types, but if analysts consistently blow up, they will find themselves out of jobs.
I think sites like iexchange.com would never have been set up if it hadn't been so easy to make money in the market. Nobody would have accepted the sheer hubris of the site during any other market period except the one that ended in April of this year.
That's one of the reasons that the site seems almost moribund to me. I didn't see a lot of current postings when I went many times last week, because I think a lot of these do-it-yourself research departments are giving up because of the difficulties of this tape.
To which I say, hey, that makes sense. I don't want people advising me who have never seen the dark side of the moon. It's pretty chilly out there.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at
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