The Bears Rang the Register Today

When people ask what a short-covering rally looks like, JJC will point to this day as the prime example.
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When people ask me what a short-covering rally looks like, I will point to this day as the prime example. The market ramped at the bell as people sold

SPX

puts and

NDX

puts to be sure they didn't get hurt by a benign

CPI

.

Sure enough, this is just the kind of action we used to see in 1990 when a whiff of good news would cause the bears to ring the register.

Make no mistake about it, even as I look to buy the drugs and the foods, I am struck by how the bears are calling the shots here. A bear capitulated and boom, we get a rally that looks great.

But it just looks great. I was trying to sell some stock in some brokerages that I have been stuck in that I know are "wrong" here and it wasn't that easy to blow out of them. That's because it was simply programs behind the move.

Should the bears be worried here? Nah, they should simply be gleeful. They have had a very big run.

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.