Dow 9500, anyone?
This day sure put an end to Dow 10,000 talk. That
cautionary call on
might have done this market in for the day. Just when tech looked like it might be able to grab a foothold, the Dell call pried the fingers from the ledge. Couple hundred points below?
At this point, I am sticking in bids for my fave blue-chips, companies that are down 3 and 4 points on pretty good volume. Many of these are the same companies I had sold earlier during the ill-fated run to Dow 10,000.
. Actually, I am not taking it. I am bidding. I just got punched at 83 with a bid that I stuck down there when the stock was at 84. I didn't think that Merck would get that far down. I can handle that price as I rebuild the stock ahead of some good painkiller news.
My edge? None. I like Merck. (Good article about the pros of Merck in this morning's
Investor's Business Daily
.) I got down to tag ends in Merck and am now anxious to rebuild it into what I think is a slowing economy.
Again, I am not hearing lots of merchandise for sale. In fact, I am not getting any calls from brokers trying to move pieces. But I am seeing lots of selling spilling over from the futures pits. That's probably who hit me in Merck.
We are now getting a true pasting as the 2 p.m. sell hour delivered its pounding. Seems like the ugliest day in many, many months, doesn't it? I guess there are some things you can bank on in this business, and one of them is you have to wait until the 2 p.m. sell hour to run its course -- or not, as happens to be the case today.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Merck, although positions can 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