"Shaky" is a kind word for these levels. Just like after the crash of 1987, you can't maneuver in these levels. I can tell you endlessly about this, or I can show you.
was in free fall, down about 14 to 122, we went in to buy 5,000 shares. First, our 5,000-share buy order stopped Exodus in its tracks. Second, it turned it around. Third, by the time we finished buying it, we had a 125 average on the 5,000. (We only use one broker, we don't take different brokers' offerings and we don't do it electronically. We are an institutional not an individual account.)
Minutes later it was at 133. As we only got 5,000 shares I told my trader to kick it out. Our order stopped the stock in its tracks. It turned around, nosedived and, by the time we got out of the 5,000 shares, was at 126.
We made the stock; we wrecked the stock. We made $5,000.
Now, if you didn't look at the times and sales, you would have seen this 10-point move and figured, "Heck, I could have grabbed that." But I am telling you, it wasn't gettable. It was impossible.
In fact, trading in some of these
names has become impossible. Last evening I told our traders, "No more of this stuff. We either own them or we don't. And until the liquidity comes back, stay away from the harder Nasdaq stocks to trade. They are like delicious but expensive candy; they aren't worth it."
was great. But nothing is great enough for the dot-coms in this tape. When you combine the "
not great enough to please" Yahoo! with the unbelievable miss by
, we expect a long day. We are gratified that the overseas markets are so strong, which gives us a chance to lighten up at higher prices.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Yahoo! and Exodus. 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