So, technically, I look at the market last week, and I connect the dots -- man, am I good at that -- and I say to myself, "There's a head-and-shoulders pattern if there ever were one."
Sometimes head-and-shoulder patterns look like they were painted by
. Others have a
non-quality. But occasionally you get one that looks like it was drawn by artists who took that old course they used to offer on the backs of matchbooks. You know, the course that teaches you to draw things as they are, lifelike.
Fifteen years ago, I would have bought puts instinctively when I saw that chart. I would have done so because so many people run money technically that I would think the pattern would be self-fulfilling.
Now, I think, we could have a real ramp here because so many people might be buying puts because of this stupid pattern. Give me a break!
Don't get me wrong. I love
Chartman. I devour
Meisler. But hold it! What I care about, technically, are things like advance/decline (smokin'!), new highs vs. new lows (read Meisler, this is turning positive) and overbought/oversold. (We are still oversold, so we could still ramp.)
To me, I guess you could say I am holding the paper upside down. And I like what I see.
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