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Bulls want me to show the bull-market flag. There is no bull-market flag. There is a chance for a breakout of the drug stocks. There is a chance that people will say, "

Microsoft

(MSFT) - Get Microsoft Corporation Report

and

Motorola

(MOT)

are wrong, but

AMD

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and

Altera

(ALTR) - Get Altair Engineering Inc. Class A Report

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are right."

You can even make the case -- and we are willing to do this -- that Microsoft and Motorola are rearview-mirror stocks. That the weakest months were January and February and that March actually is stronger. But I ain't waving no market flag. Snipers shoot at the guys with the bars and the flags.

You want to buy tech off of this? I say, great. But portfolio managers have tech coming out the wazoo. They need to get whole. They are now dripping losses. It frightens me that I was hearing rumors about the potential liquidation of some of the best hedge funds in the world yesterday. I know

those rumors are untrue. But I am no fool. This is a "smoke-there-is-fire" business and when you hear that someone is in trouble, someone

is

in trouble -- you just don't know who. These funds must sell -- not buy.

Which is why, when they ramp the opening this morning , I will be a seller. I will sell the tech stocks that I bought into the afternoon's weakness and I will buy more

Merck

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because it looks like that Merck has won the battle vs. the arrogant venture-capital goons that were riding so high just a few months ago.

You can buy some of this tech at puffed-up prices and I will buy it back from you a few hours later. Just a heads up as to how we are playing it.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Microsoft, Merck and Altera. 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.