Here Comes the Rout!

The encirclement of the bears that the trader predicted is in full force.
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We are now seeing the noose tighten on the

Cisco

(CSCO) - Get Report

and

Intel

(INTC) - Get Report

short-selling

rumormongers. The

encirclement by the mutual-fund bulls is in full force and we can expect -- historians, are you ready? -- a Kharkov rout!

Or in non-Eastern-front English, the bulls are really pressing their semiconductor and networking bets and those who were short (expecting some negative call), were wrong not to bring the shorts in when the going was good.

Now they are surrounded by bulls and the

breakout can only come to the upside. Or in

E*Trade

-eeze, "those bears have Cisco and Intel

puts coming out the wazoo!" Take those shorts off in a private room!

Two comments on this. One is that some hedge-fund guy asked me why I beat up on the bears. I told him because it was fun, but I just said that to be ornery. I am a hometown kind of guy, a true Philadelphian and a commentator who roots for my club. My club gets ambushed a lot by bogus rumors spread by the bears and I don't like it one bit. So sorry, gotta call 'em like I see 'em.

Secondly, a bunch of you emailed me and asked how I knew that an encirclement was going on. How did I know that the bears had overreached? What statistics did I have? What data did I get? What terminals did I use to determine this stuff? What newspaper or TV show or book could they watch or read that would give them that data?

Holy cow!

This stuff is from my head. As I say so often, I do nothing but think about this stuff every waking hour of the week. I am possessed by the market and by the games people play with it. I can't stop thinking about it if I wanted to. I intuited the cauldron -- the encirclement -- the way a good general tries to spot one coming.

And you see what I see. When I see it.

The whole point about why

TSC

is different and my stuff is different is because it is

not

computer generated, It is based on proprietary, noncommodity viewpoints that tend not to show up on other sites.

Enough said.

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