Those who aren't fully invested or, worse, those who are short, are taking it on the chin today -- in bonds and stocks. There is something about big volume breakouts with massively positive advance/decline lines that kind of brings out the bull in just about everyone except Merrill Lynch, which has remained steadfastly bearish through one of the great moves of our time.
Many funds have fiscal years that end in October. So they are busy jettisoning stock, both winners like
and losers like
, as aggressively as possible. (I don't have a list of who has an October fiscal year, but maybe the fund group does?)
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These shufflings occur every year. They're one of the reasons November is always a better month than October. They can be gamed. That plus the fact that today is mark-up day for the hot funds (meaning that they buy their favorite stocks to look better, so maybe one of the monthly or weekly magazines will put them on the next issue's cover). Relax, every last day of the month is mark-up day for these jokers, and that can mean that the ball is not coming down anytime soon.
Let's talk about the shorts for a moment. The greatest short of the year so far, sans
owns, have been the Treasuries. Now that they are ramping, you can feel the pain from those who have stayed short this market through thick and thin. That's one of the reasons I'm holding my bonds for now, thinking I can see par.
I also know plenty of
shorts out there. Maybe that should be "knew." They won't be players again anytime soon.
Again, the boards. I don't want to go buy Lockheed in free fall without talking to someone. But who? The brokers who liked it all the way down? The company, which doesn't have a clue? No, other readers of
Check out that
board. I pulled the trigger for 15,000 shares, as I told that board, a few minutes ago.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Tyco, Lockheed and the 30-year bond. 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