Can't work with these bonds. Got to wait till they settle down. That's how we are playing it. We are surprised with the ferocity of the bond decline, and it makes us unwilling to plunge in. The buys we made down 120 points yesterday aren't working -- and won't unless interest rates stop going higher.

This is one of those days when we are just watching the

Bloomberg

, watching the bonds getting knocked down, trying to protect ourselves by buying puts on companies that are losers in a rapidly rising rate environment, which is what we now have. If there were a TSEL index -- that's

The Stocks Everybody Loves -- we would be buying puts on that for insurance and taking them off when rates settle -- wherever and whenever they settle.

When the bond market is sliding like this, there are two things I like to do: have some cash and have some puts on to offset my longs.

And I like to do less.

Random musings:

Thanks so much for all your communications about the

NYT

thing. Hero/bum/hero/bum -- rough business.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. 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 by sending an email to letters@thestreet.com.