It's Raining Nasdaq

While Cramer thinks the storm may subside a bit, he's careful around those derivatives.
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It's raining Nasdaq, hallelujah! And most of it is from derivatives, so it's so hard to get a handle on it. In other words, large institutions are selling NDX futures, and the selling is spilling over to the real market. As I have said time and time again, futures-selling is much, much more powerful and concentrated than real selling. Military aficionados would recognize this kind of shelling as HE, or high explosive. Football fans: Think Romanowski blitz. Others, real hard rain, one that might let up and might not let up, depending upon how long the 'cane lasts.

Why the 'cane? One thesis, bad news at

3Com

(COMS)

and

Intel

(INTC) - Get Report

(via the

AMD

(AMD) - Get Report

price-war

rap advanced by Kurlak at

Merrill

) is coalescing into a short-term belief that personal-computer sales have gone awry. I don't buy it, but you can't just stand there getting poured on. So I do what I always do: buy my little lots of my favorite tech names all the way down.

How about this authentic gibberish about tightening? Could that be behind it? I don't know, but if there were a tightening bias, don't you think they would have tightened yesterday? Or is that too

Purloined Letter

-like?

The doomsayers are out in full force. I am tiptoeing out of my foxhole as I write this, thinking that the HE/Heavy Rain/Romanowski blitz might let up a tad. But when it is derivative-selling, as I mentioned, that means someone is behind the switch pulling it. If you think he's coming back, as I do, it is too early to make a stand in all but your most beloved names.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At the time of publication, his fund was long 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 an email to letters@thestreet.com.