Not Jumping the Gun

While the Dow skids, Cramer catches up on his reading.
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What are we doing at Cramer Berkowitz with the Dow down 150 points?

Nothing.

I mean, really, like reading-the-papers-and-research nothing.

We don't like it yet. And we hate the three-pronged course that faces the

Fed

and the potential impact of the three prongs on the market.

At our 12:30 strategy session we came up with the following:

  • If the Fed does nothing and says nothing, it will be viewed as being not vigilant enough and bonds will sell off and take stocks with them.
  • If the Fed tightens, it will be viewed as the beginning of a skein of tightenings and stocks will get clocked.
  • If the Fed changes the bias, without raising, it will be viewed as bullish for the cyclicals and you will have to buy them.

As everything is selling off today, why do anything in advance of tomorrow, when two out of three choices could be deadly and only one out of three is any good, and even then for a small group of stocks?

Throw me a magazine.

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 any stocks mentioned. 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

letters@thestreet.com.