Cramer's Glad He Bought When He Did

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So far it's on plan. The big selloff at the opening that tested the 200-day was A-okay. That's supposed to happen, and it is triggering massive selling of puts, particularly

SPX

puts. As those were put on in massive amounts in the last few days, that's important.

A strong quarter delivered by

Cisco

(CSCO) - Get Report

, which I am long, was initially greeted skeptically (you could buy all you wanted at 93), but now it is ramping nicely.

AOL

(AOL)

is tougher. What a battleground.

Jeff

, my partner, is watching this like a hawk, and he's a believer that the buyers will have to come in.

The guys who shorted on

Acampora's

CNBC

blast are also beginning to get squeezed. That's certainly right; they were the last to hear. Finally, the advance-decline, which has been the Love Canal of this market, seems to be getting some remediation.

What needs to be seen? Follow-through in the drugs, which still act crummy. Follow-through in old tech, which was strong yesterday until Acampora punished them.

Jeff is thinking massive squeeze. Me, I'm glad I did my buying when I did.

James J. Cramer is manager of a hedge fund and co-chairman of TheStreet.com.

At the time of publication his fund was long America Online and Cisco, 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 by sending a letter to TheStreet.com at

letters@thestreet.com.