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Enough About Tightenings

Besides, it looks like the economy is cooling.

I'm declaring a moratorium on talking about more tightenings. It won't be respected by the talking heads, but one must wonder, facetiously and cynically, if the Fed went positive just to shut people up about another tightening.

In fact, it would seem that the Fed is saying that the economy is cooling. Check out the vicious action in the cyclicals. They sold off like there is no tomorrow. I am watching the paper stocks getting positively crushed.

You don't get that kind of action when the Fed is about to tighten again. You get that kind of action when the cyclicals have had it. Throughout the last hour the drug stocks continued to get stronger and stronger, and tech stayed quite strong. I have had to pay up, miserably, for both, but now they are looking OK and I sense that higher prices beckon for both.

James J. Cramer is manager of a hedge fund and co-founder of 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

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