When the Market Is as Miserable as the Weather - TheStreet

When the Market Is as Miserable as the Weather

Cramer says it feels like a do-over day already.
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Miserable market; miserable weather. I am seeing lots of put-buying and tons of call-selling.

To me that makes sense if you are beleaguered. That's what happens. People capitulate. People sell. People try to profit from the decline. When the gloom gets too thick, you will see a snapback rally because there are some good things happening. The dollar is stronger, not weaker; bonds are OK; oil isn't going nuts.

The only thing wrong is the weather. And some sort of cautionary call about the server division of

Hewlett

(HWP)

, which I am taking to be pure rumor, but people are taking tons of action on it.

What are we doing? Nothing. You take

IBM

(IBM) - Get Report

to 130 on this HWP thing, we buy. You take

Yahoo!

(YHOO)

down 5 and we buy more.

Intel

(INTC) - Get Report

at 80, and we are buying.

What are we selling? We sold a little

Nokia

(NOK) - Get Report

, pared some IBM up higher (yes, trying to trade around these behemoths), and attempted to buy puts on Hewlett-Packard, but couldn't because it dropped too fast. And we sold 5000

Sun Micro

(SUNW) - Get Report

that we bought at the bell yesterday because we feared that Sun would get hurt by collateral damage, even though we think the damage is being

caused

by Sun's strength.

Feels like a do-over day. Already.

Random musings

:

Quintiles

(QTRN)

is proving a painful lesson for those who buy stocks when it is announced they will be in the

S&P

. This one got walloped before it got in, as the

King World

(KWP)

deal was delayed. I bet you lose every dollar you may have made in this strategy all year after a blow-up like this...One day I hope we will have boards up immediately on stocks like

Coinstar

(CSTR) - Get Report

where we can help each other figure out whether it is a buy or a sell. Right now I have no idea.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long IBM, Intel, Nokia, Yahoo! and Sun Microsystems. 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.