Cramer a reliable fade?

Discussion in 'Strategy Development' started by a529612, Apr 17, 2006.

  1. Has anyone tried shorting his picks? Sometimes I wonder if he has some agents doing this for him at some obscure market.
  2. JORGE


    Tonight would be a good time to try. It is a re-run of the Feb 22 show and his picks are still moving.
  3. It's a crowded trade and some of his picks are actually good stocks. A lot of times the stocks chop for a day or two after the gap up.
    The best shorts is in afterhours when the Joe Shmoes are buying their odd lots at any price.

    I'm sure with some tweaking you can devise a decent short strategy around Cramer. He does cause irrational prices, so you can catch a small pullback or the total dump.
  4. He said yesterday ADM will crash post earnings. Now it's up 10%. He's one reliable fade.
  5. nassau


    I do it all the time..usually getting out same or next day with 50cent to a dollar depending on the stock.
    you need to be careful as a lot of his suggestion have very little volume..several hundred thousand shares.

  6. JORGE


    And how would you have done shorting his MGPI recommendation? Predicting the next day movement of his touts is a crap shoot. I trade his picks, but treat them like I do every other stock that has a news related gap. Some of them fill and some keep on going.
  7. Did he ever say to short it going into earnings?


    He has been a bull in that stock, saying he thought it would sell off post earnings when people would likely ring the register after the run its had and if it did that it should be bought/pounced on.

    My point being, nobody can time the market in the short run worth a damn, he makes dozens of "calls" per show, you can't systematize fading someone that makes that many calls and changes directions not just day after day but even hour to hour occasional.

    Expect mixed results with fades just as people should expect mixed results with his (or anyone elses) so called picks. The only thing reliable about most stock pickers especially the hyperactive ones is that they are unreliable IMO.