When the Guru Speaks, Listen Up

Abby Joseph Cohen has made a brilliant call.
Author:
Publish date:

It makes all of the sense in the world to do what

Abby Joseph Cohen

did this morning. This week is about the only time you would not get major damage as institutions are in shape to keep stocks up for the end of the quarter. It is a brilliant, brilliant move.

On any other day you run the risk of a real rout. Instead this downturn will be muted because enough institutions are worried about their quarters that they will prop things up into her equity take-out.

How important is this? Look, gurus do matter. I admit it. They shouldn't. Over the long term they won't. But let's face it: She's been dead right. When the dead-right people speak, you have to listen.

Or, to put it another way, she's got the hot hand. The hot hand says take something off the table.

People will do it. And those who do it will benefit from better prices than normal because of end-of-quarter window-dressing. Man, is she smart.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was had no positions in the stocks mentioned in this column. 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.