Analyst Calls Move the Market

Combine the expiration with a Sun downgrade and an Amazon upgrade and what do you get? A tough morning.
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Tough out there, isn't it? Inevitably the options shenanigans of expiration muddy the waters beyond recognition, so don't feel too confused.

That said, Steve Milunovich's downgrade of

Sun Micro

(SUNW) - Get Report

over at

Merrill

on top of SUNW's cautious guidance -- and it was so I wouldn't debate this -- controls a day like today. It gets people worried about hardware again. Hardware and software seem to be having their problems, causing my partner,

Jeff Berkowitz

, for instance, to worry that the

Jim Seymour

vision of a Y2K halt in orders could come true. That would mean no scalping of old tech yet.

Contrast that with how people view the Net. Jamie Kiggen's upgrade of

Amazon

(AMZN) - Get Report

got the whole Net juiced and trumped

Excite's

(XCIT)

negativity. I know that Jamie had loved

AOL

(AOL)

the most, so I sold some AOL on this call, and judgment looks like that it was just plain wrong. When a powerful analyst speaks positively about a Net stock, it moves the whole Net, even the one that he neglected when he pushed Amazon! Now I want to buy my AOL back on any weakness, hoping that I won't lose any money on the trade.

In the meantime, of course, I have to contend with the cyclical sideshow and the possibility that a large account seems to be putting together a big derivative trade to get long cyclicals. Thanks!! Just what I need.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long America Online and Merrill Lynch, although positions can 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

letters@thestreet.com.