An Ugly Tape and a Bushelful of Nortel

The trader got caught with the stock down a buck even though there was good news. What to do?
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So we bought some

Nortel

(NT)

today off that story about how it has gotten more business from

AT&T

(T) - Get Report

. We thought it was a nifty idea because it was "found" business for Nortel. We didn't know that the tape was going to be as ugly as it turned out.

Now we are stuck. We didn't sell because the market took the stock down too fast. We got caught.

So often this situation occurs. We bought because the stock was not up at the beginning of the day and we thought it should have been. We are now down a buck. We did not average down because this was meant to be a trade. But we didn't take it off because we didn't want to take the loss when there is something positive that has occurred that is not "in" the stock.

Here's what we are going to do. As part of this continual diary, I am going to keep you up on this Nortel trade, as we battle to make it work, or cut our losses.

As I leave today, I am not sure myself what the right course is. More tomorrow.

Random musings

: Collateral damage time.

Office Depot

(ODP) - Get Report

blows up and mentions some vague "technology" products as part of the reason. Great, thanks guys. ... Down 411 points in three sessions. Getting oversold again.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Nortel. 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.