Indexing the Red Hots
Nothing like starting an index and having the first day you test it be some sort of peak!
This weekend, I am revealing my
Cramer's Red Hot Index
. Eighteen companies in this index.
Totally subjective
, just like the
Dow Jones
averages.
Wouldn't you know it but premier
Red Hot name
Redback
(RBAK)
goes and unlocks a lockup (allowing insiders to sell), cooling off my group analysis. Now, I am thinking, if it is a Red Hot Index, but it is Cramer's, the beauty is that I can take something out when it is cool and put in another Red Hot.
My able associate,
Matt Jacobs
, came up with the 18 number. We were going to do two geographic divisions, but they are all in the West. We include some rookies.
I have teased enough. You will love this index. It will replace all of the ones going right now as a measure of this crazy market's temperament. I can't wait until
CNBC
or
Dow Jones
or
The New York Times
finds a way to crib it and call it their index. That ought to be a hoot for all of us.
Random musings:
Heavy options selling in
Microsoft
(MSFT) - Get Report
, but it isn't crushing the stock. Could be kind of bullish. Otherwise, this is the ultimate nothing day with many desks staffed lightly. ...
Merrill
was not that bullish on
Hewlett
(HWP)
; it was
Maria Bartiromo
who was bullish. Who will stand up and stop this stuff?
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Microsoft and Redback Networks. 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.
