Foxhole Philosophy

The trader has committed 25% of his firm's capital and now is trying to predict what tomorrow will bring.
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Helmets back on. Incoming artillery. Seems less heavy than before. Might be white phosphorous instead of high explosives.

Some technician just recommended shorting a group of highfliers. I am playing contrarian to that one. Where was that guy when we were

taking it off the table?

This little selloff is making it difficult to figure out what will happen tomorrow. We needed to see stocks hold here so only the most liquid of the leveraged players are left standing. Heavens!! The selloff may not have been long enough to knock out all of the people who need to get knocked out to get a definitive bottom.

We are riding out the shelling in our foxholes. We have committed 25% of our capital and now don't want to do anything but fill-ins.

One thing that hurt us today was high-dollar-amount stocks. For example, we bought a little

Juniper

(JNPR) - Get Report

down 25, a total violation of my wife's rule to avoid high-dollar-amount stocks in crashes and near crashes. "Don't go after the ones with 200 bucks in them, they have 200 points of downside!"

Hoo-hah. I miss her.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Juniper. 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.