Mea Culpa, Yahoo!

The trader was wrong about Yahoo! today. But he still thinks the stock's action during this session was wrong.
Publish date:

Let me just wipe the



egg off my face and then I can address today's action. Nothing like an online diary to get that painful

cinema verite

feel. Brutal to be this naked. Just brutal. (Two days ago, that egg would be fried, but the heat has broken a bit.)

Yeah, we thought Yahoo! would go up. It went down. We thought the story was good. We still do. But it went down. The only difference is that

we said it


This makes for two quarters that Yahoo! has beaten us. I know you long-termers are thinking to yourselves: "What the heck is he talking about? There is no loss. He isn't beaten."

But we mark ourselves to market everyday. And today was a loss day for Yahoo!. We got an "F" trading Yahoo! today. Period. No asterisk for "it will come back someday."

Strangely, it was a good day for the


. That emboldens us to take a little more, to "average down," so to speak. For us that breaks the trading rules. But we think the stock's action today is wrong. And we are not going to book a loss on something we think is wrong. But that doesn't mean it isn't considered a loss internally. When you trade for a living, you think about basis constantly, and we are underwater on our basis on the stock we bought yesterday after the bell.

We did the wrong thing with Yahoo! today. We were wrong.

Make mine scrambled.

Random musings:

Unremitting selling in Latin America today, starting to spill over to those who do business there. Spooky.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund was long Yahoo!. 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