What do you do with that counter-trend stuff? What do you do with your banks that are rallying and your food stocks and drugs stocks that have spring? Is this the beginning of a whole new market?
Ah shucks, I knew you would ask that. To me it isn't. It is an opportunity to let go some of the real losers that are up on a group move, but hold on to the winners.
For example, we are letting some drug stuff go and we are doing a small trim of our banks. We want to put the money in some hard-hit tech that we like more at these levels. Sure it makes us more concentrated but we don't think there is anything new happening. We are still in the gut-wrenching it's-not-going-to-hold
and we want to have money ready for the I-can't-take-it-anymore-why-did-I-go-into-the-hedge-fund-business inquiries.
just yelled out,"Why didn't I go to landscape-architecture school?"
Can't be far away from the real sucker punch in NDX now.
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