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In Praise of Crummy Openings

Cramer is bullish. And he doesn't want to see a strong opening. Here's why.

If you are bullish, you want a crummy opening. I know that seems counterintuitive, but a rally at the beginning would be a nightmare because it will bring out trading sellers. We don't want that.

Better would be a whoosh down at the opening so we clean out the weak hands.

In fact, I would sell the opening if it were strong, so I could buy it back -- because a strong opening can't be maintained until all of those who are worried about being sold out by the margin clerk aren't playing.

We need stock in solid hands, not margined hands. Or else we will get more of that last-hour action that is so debilitating.

Optimum: a selloff at the opening and then a turnaround midday.

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Worst case: We rally at the opening, and then fail hideously and spiral down the rest of the day.

It doesn't have to be worst case if the market rallies at the opening, but I know I will hit the darn thing with both barrels -- I am that confident that an opening rally will falter.


Because they always do.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund had no positions in any stocks mentioned. 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