The Tape That Forgives

In the post-Memorial Day tape, Cramer says that supply is begetting demand.
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Here's another change for the better: Supply is begetting demand. One of the great rules of bull markets is that supply is scarce. That means if you hear that there is a piece of merchandise for sale, it gets snapped up and then some.

One of our core holdings,

BEA Systems


, had a huge block of stock for sale. In the pre-Memorial Day tape that would have brought out shortsellers galore.

In the post-Memorial Day tape, buyers swarmed and cleaned up the seller as if it were magic. (Please don't think this is contradictory to my tech

piece this morning that I am writing lovingly about BEA Systems. I am just pointing out a supply/demand situation.)

This change proves to me again that the tape is more forgiving for everything. That's what we want to see if we are long. When I tell you that supply begets demand you may be thinking, "Hold it, where did he get that?" To which I say, that's something I learned when I started in the business. It is just something they teach you. If you were never taught it before, now you have.

James J. Cramer is manager of a hedge fund and co-founder of At time of publication, his fund was long BEA Systems. 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