One line did it all: "Equity prices are high enough to raise questions about whether shares are overvalued." By not putting in any caveats, such as "but if earnings increase, stocks could be reasonably valued," or "the extraordinary rally in interest rates allows stocks to be propelled higher,"
allowed the griddle to cool to 451 degrees Fahrenheit.
That line caused a drop in the futures that gave people a chance to get in after the red-hot-griddle opening scalded every taker. That line caused people to puke what they bought and jarred a sense of fear into the market.
No matter. If it weren't that line, there would be another line taken out of context or without caveat that would have caused the selloff. Those soaring openings are the stuff that makes fools out of everyone but the market-makers, and you can bet they used the quick futures hit as the opportunity they needed to take in the
that they shorted at the opening.
Again, this is not the market-makers vs. the day traders. It is not
. It is simply supply and demand and attempts by the market-makers to make orderly markets. Don't take it personally, and you can profit from the pattern.
Missed that chance? There will be others. But the tone sure is better, and the shorts can't buy them in fast enough. Market pros marveled at how all bids dried up at once for that giant
put seller. No mercy showed to those who stayed short. None at all.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At the time of publication, his fund was long Cisco and Intel, though positions 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 by sending a letter to TheStreet.com.