For all of you who keep emailing me this thought, this one's for you: The reason why the Net is going down is because daytraders have made a fortune, have huge capital gains and have been playing with those capital gains until today, when they were paid to the IRS.
There, I've done it. I have written it.
Here's the problem with this thesis: Daytraders are buying cyclicals.
Maybe the gains are so great that there is enough money to buy the cyclicals after the money has been taken off the table?
Ahh, but the emailers have a comeback. All cyclical buying is being done by
. Sure, yeah, and brokers are happy to give up Fidelity's name to these traders.
Why do I think some stocks are going down? Because they have had a huge, huge run. Periodically, people sell stocks after huge runs. It happens. I have seen it before. Maybe several thousand times.
As long as interest rates stay low and the economy stays strong, I will be inclined to buy weakness. Taxes, profit-taking, common sense or whatever other reason, I don't care. If it creates my price in, say, an
, I will be a buyer, not a seller.
Until the exchange makes brokers mark sell tickets for why a seller is ringing the register, I doubt we will ever know exactly why someone sells.
That's why I can't really focus on it.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long EMC and Pfizer, 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 at