eBay Holds the DOT Hostage

The link between eBay stock and TheStreet.com Internet Sector index is a joke, but it's still powerful.
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Don't you hate being hostage to eBay (EBAY) - Get Report? Here is a company that seems to have the whole DOT by the neck. Seems like a darn shame to me that eBay's subpar execution puts the knock on a bunch of other companies.

I have been watching this relationship all morning. Every time eBay flirts with a 9 handle (meaning it has a 9 in front of the price), the DOT market dives. Anytime it makes a push above par (the Street slang for 100), everything feels rosy. This linkage, of course, is a joke. There is no correlation other than in traders' minds. But that mindset can be as powerful as it is knee-jerk.

I can't tell you how many times I have heard that if eBay could just stabilize, blah, blah, blah.

Me? I don't care. The action away from the DOT, particularly in the world of PCs, remains strong and I like that.

Random musings:

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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

jjcletters@thestreet.com.