The market has virtually no memory for bad news. It's been that way ever since the 1980s began. Funny, right when Ronald Reagan took over as president, the market lost its memory for pessimism!
Take the action in
. Weren't people writing off Intel last week? The chart was bad. The news was absent. The business had slipped -- or had it? Today the stock is simply not for sale. Whatever that bear case was, it is now in hibernation.
. Suddenly, last week, that DRAM shortage didn't mean much in the face of the earthquake. Now people have forgotten the earthquake. They are simply thinking of momentum, and MU has it.
had been given up and left for dead? This stock had become an embarrassment. Now it is screaming after
blessed higher access fees. Or
. I was wracking my brains trying to figure out why I hated MOT last week but couldn't remember. I should have just stopped thinking and bought some!
Yeah, the market can't keep a negative thought in its head through a weekend. That's why I am buying
. I figure people will forget the
deal in another 24 hours, and BFO will come right back.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long America Online, Bestfoods, Microsoft, Intel and Micron Technology. 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