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Raising Some Selloff Powder

When the analysts emerge from their bunkers and start waving their buy flags, Cramer will be ready.
Author:

The shelling has ended. The analysts have emerged from their bunkers, and they are waving buy flags -- not surrender flags!

No kidding.

One of the reasons people buy on dips is that the analysts emerge the moment the coast is clear. And they have clout. They have power. They can move things back.

This pattern of the big selloff where the analysts hide in their bunkers and then emerge the next day is one of Wall Street's oldest and most respected traditions. It is something you can bank on.

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We are banking on it to make some sales of the stuff we bought at the close yesterday to get to a less long position for a potential failure of the first rally.

"Gotta raise some powder for the selloff," as my head trader, Todd Harrison, just yelled.

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

jjcletters@thestreet.com.