The Whoosh Effect

After a big drop, there was a crescendo at the close when the forced selling stopped.
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It's called a "whoosh." That's when we drop and drop and drop and then -- boom! -- you blink and we are much higher, for no particular reason.

Others might call it a crescendo. Still others say it is a V bottom. We get them when, collectively, a group of sellers stops all at once. Maybe they stopped because the forced selling had reached its conclusion (remember, brokerage margin clerks have to sell people out between 2:00 p.m. and 3:30 p.m. if they want to be sure they are going to get the firm's money back). Maybe they stopped because the

Nasdaq

was down 6% and change and the sellers figured that better prices could come tomorrow.

Or maybe mutual funds figured, "What the heck, we can take up our faves from here starting tomorrow for a little extra juice," so they stopped selling.

Whatever, the selling did stop. We did get a whoosh. In the old day, before all of the action was in Nasdaq, we would call these "bid-wanted" situations in listed stocks. That's when institutions come into big trading desks and say, "We own 2 million shares of

EMC

(EMC)

and we want out." Or, "Please, please, what will you pay me for these six stocks that I can't look at any more."

But with so much of the real show in the Nasdaq it is very hard to see what bids are wanted. The Nasdaq doesn't work like that. It is all secret. We can't see it. We can't get our arms around when the crescendo sellers are really in there capitulating. That's one of the reasons why it is much tougher to figure out when all of the selling is done. We end up having to buy little bits on the way down because we don't know when the whoosh will occur.

We think that the whoosh we saw today will hold. We are seeing

Intel

(INTC) - Get Report

, which has some news, trading up to 129.5 -- that stock traded at 123 right before the whoosh and closed at 129. We are seeing large buying in the

QQQs

. We expect Europe to rally tomorrow and that the buyers in this country will make themselves right to restore some of their performance to this now "OK" quarter.

And the crystal ball beyond that? Sorry, Frank Morgan here, the crystal's gone dark, and I better get home to the

Trading Goddess

. We were glad we made that last round of buys which I

shared with the site. We think those are the ones that will make us good money tomorrow.

Random musings:

Congratulations to

Datek

for winning our

survey . Sometimes, when I unfurl

TheStreet.com

flag, it looks mighty small: Not many of the big media organizations picked up our poll vs. others that are much less sampled and much smaller. But so what? You saw it. You read it. I guess that will have to be enough.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Intel and EMC. 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.