Nice shakeout. It's incredible how a market that looked so good at the tail end of one day can be so doggone awful the next. This is the true pattern of horror that we have all gotten used to.
We are putting the money to work on weakness in some new areas. We'd rather take money that we had put into tech on weakness and put it in aerospace and defense instead.
We think there is a sea change going on here. Tech has become so hard here that we prefer to sell some on strength and redeploy it in other areas. That doesn't mean we are abandoning tech, but it does mean that we are circling the wagons, making our best tech bigger on weakness while bailing from outlying tech.
Let me give you an example.
. But as it goes higher, we sell 5000, and if it gets hit we buy back only 2500. We want to make these positions smaller.
Aerospace and defense strike a new theme for us. We like the tight race for November; we like the fact that both teams, the Democrats and
, would probably be better for defense than Clinton. We like the fact that airplane orders have turned up and seem solid.
We like the fact that there are minimal profits, so little profits to be taken. And we like that these stocks are big-cap
New York Stock Exchange
ones rather than unhealthy Nasdaq ones -- lower reward but lower risk. That suits us fine.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Verisign. 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