Hmmm, looks like the
seller might have finished. In checking with every major OTC desk every five minutes in the last hour, I did not find a single large seller. In fact, after the
news came out, there were large buyers of
, as people recognized that AMD may be faltering in its next generation of chips. In other words, the selling was all derivative, all stemming from a program designed to sell all the favorite names that have propelled this advance.
You will hear people blame bonds for this selloff. That's just plain stupid. The drug stocks were actually an oasis of "strength" and they trade with the bonds. You will hear people blame the wild Internet shenanigans, the red rovers, as I now call them. But that's wrong too. In fact, the Net wasn't that volatile.
Someone wanted out. He wanted out more than anybody wanted in. And when he was done, he wanted to be sure he left his tire tracks all over the backs of anybody who tried to call the bottom. Making things worse, camp followers piggy-backed, and what could have been an orderly selloff just became a flat-out rout.
Me? I dodged the high explosive, but my ears are ringing. Have to see whether the same selling comes back tomorrow. If it does, then the barrage will be dealt with and the prices will be cheaper and more fetching. No, this is not the Silver Lining Department speaking (like that
Greed & Fear
character that speaks in haughty third person over the weekends). Today was hideous.
That said, I would have loved to have seen what it looked like without the high-explosive program. Maybe tomorrow he comes with some white phosphorus. Stings, deadly, but lacks the impact of what he threw at us today. I feel good that I held out to the bell to buy. I feel bad that if this guy comes back, I am not done buying!!
(A word on "he": As I have said many times, I have no idea who did the selling, whether it was one big account or two accounts. Or whatever. What I do know is that the selling was concentrated in the futures, not the cash market, and the market makers never saw lots of merchandise for sale. Just 10,000s and 15,000s from "away," which fits the pattern of futures spill-off.)
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. 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 by sending an email to firstname.lastname@example.org.