Why You Shouldn't Be Looking at the Transports Right Now

Because you'll miss the big picture and a big move.
Author:
Publish date:

Bunch of guys yesterday bombarded my mailbox with some transports rap. You know the drill. "Jim, you don't know what you're are talking about -- the transports haven't confirmed." Or, "Jim, if you look through history, never will you ever find a case where the transports could diverge."

How much money has the term "divergence" cost me in my career? What would I do now if I had shorted this market based on the poor action in the transports? There were so many bears using my email as a honeypot that I had to tell one, Alagina, that he had to stop pestering me about shorting this market because it was causing me to lose my train of thought!

When you start basing your decisions on the divergence of the utilities or the trans you are falling under that spell that I talked about this morning in my game plan piece. Next thing you know, oil has cracked, and you are up the creek without a long.

Goosebumps. Zombie Island. You parents get the picture.

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