Heading for a Strong Close
Midday today a bunch of our brokers made calls to us saying that they expected massive redemptions by mutual funds tomorrow.
Wrong!
This strong close will bring out buyers, not sellers. The fact that we were able to have a rally and it was not met by margin selling (because that selling was
finished) bodes well. Not poorly.
In that last dip we put in a nice chunk of cash to round up to about 35% of our cash. In 1987, we failed to invest enough money in the crash and we always regretted it.
We won't regret this one.
Random musings:
We boned
Matt "I still work here don't I?" Jacobs
with a buy of
TheStreet Recommends
Brocade
(BRCD)
. Someone in my office just talked about going to new highs
NDX
. Oh man, how quickly we forget the pain. And what's with
Nortel
(NT)
? We like the
transaction.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Brocade and Nortel. 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.
