A Reader Gets It Right

A <I>TSC</I> subscriber has articulated the trader's attitude better than he could himself.
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The fact that we get a crummy ECI number, which takes the Nasdaq down only 110 points with an ensuing rally has to be significant!! This means to me that the Nasdaq at current prices has discounted the Fed rate hikes and that we have put in a bottom. Just like you have pointed out in the past, when a stock doesn't sell off on crummy news, you probably have seen the bottom. Very surprised you are shorting the QQQ (QQQ) - Get Report.

I just got this communication from one of my savvier correspondents. I immediately sent it around the office. I thought this epitomized my view of the Nasdaq/tech world (as opposed to the Old Economy world which we booted this morning) better than anything I have written. This, basically, in a paragraph, is my thesis. I am now waiting for another downturn to buy more tech. If we don't get it, that will mean that we will have to chase and I don't want to do that.

Oh, and by the way, we covered the QQQs. We put those out because we were afraid that the ECI would impact tech the way the

CPI impacted tech 10 days ago on that terrible Friday. Looks like that's not going to happen, so we covered. We took a loss. Ah, yes, in real life managers take losses.

Those guys you see on your screen? They are

Marcus Welby

to my real-life emergency-room antics.

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

jjcletters@thestreet.com.