One Bad Apple

A large seller of Nortel is ruining the trader's day. The Red Hot index, meanwhile, is outperforming the Dow and Nasdaq 100.
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Nose Tackle is killing me. More specifically, it is one seller of Nose Tackle -- what the

cognoscenti

call

Nortel

(NT)

-- that is

ruining my day. I have checked the floor picture, something I do maniacally when I am in the hole, and the only real buyers down there have been arbs and the spec. In other words, in English, one brokerage house is working a very large seller of Nortel who has helped pull the stock down.

The buyers have been arbitragers, who are trying to make a few pennies by buying it cheap in the U.S. and selling it dear in Canada, and the specialist, the agent in charge of making an orderly market in the stock.

How helpful is that?

Neither here nor there. If I wanted to average down some more I would probably wait until the seller is finished. But you never know with sellers. He might go to another broker and bang the stock down lower.

One thing is certain, this stock has some terrible pin action. In my post-mortem I will be sure to point out that the

reason why I bought it -- that it was not up on the good news yesterday -- is probably why I will lose money on this trade. There is a big seller who is not letting the stock lift. That's why I could buy it easily yesterday. That's why you could buy it easily today.

Random musings

:

Red Hot

index outperforming, down a half percent right now. Much better than the

Dow

or the

Nasdaq 100

. Stay tune for potential ramp once the bonds close at 3 p.m.

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