James Be Nimble

Cramer discusses the quickness needed in cyclical investing.
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Hercules

(HPC)

-- or "Her-ca-lees" as my 4-year-old calls it after that

Disney

(DIS) - Get Report

bomb -- shows you how cyclical investing requires extreme nimbleness. You can't be in the cyclical group the day someone says something nasty.

Go back to April 15, when I wanted to buy Hercules 8 points ago. All of the analysts told me the company was gloomy. Now Hercules has just reported. Good number, but, boy, was the company gloomy. Really gloomy.

So now you have to show how nimble you can be. Can you stay in the other chemicals today? Or do you use the downbeat statement from Hercules to get in?

What a game.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in the stocks mentioned, although holdings can 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

letters@thestreet.com.