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Cramer: Is the Correction Over? HAHA

  1. A 2% drop in the markets yesterday followed by a small rally today and hes screaming that the "CORRECTION" is over. HAHAHA, I had to post this stupid opinion, how can anyone think that what we saw was a correction, if that was the correction and were headed up another 10-20% from here I will take every word from cramer seriously from now on. However you have to be a fool to think the correction is done and behind us, if anything this market is going down a lot further than what most think.

    Cramer: Is the Correction Over?
    Posted By:Tom Brennan

    Cramer was right about the most recent sell-off: He said it would be shallow, and it was. Note the Dow’s 83-point rally on Tuesday after a brief 3% dip as vindication of his call.

    The bears must be stunned and confused – flummoxed even. Just yesterday they could have pointed to what seemed like a long list of negatives for the market: a weakened consumer, no back-to-school season for retailers, tech’s stalling out, China’s disappearance, credit-card defaults, cash for clunkers cannibalizing what little money people had to spend on other items and cars in the future, and President Obama’s plans to “socialize” medicine.

    Today? Target and Home Depot joined Kohl’s and Walmart to say that sales and profits are getting bigger. Walmart and Target, “the two biggest back-to-school stores in the country,” as Cramer called them, both said they were encouraged by this season.

    Then there’s tech. Apple [AAPL 164.0056 4.4156 (+2.77%) ] closed $4 higher on Tuesday, as the iPhone seemed to grow in dominance in Canada, Europe and Japan. And the revolutionary handset hasn’t even reached China yet. Cramer also mentioned the good quarter that Hewlett-Packard [HPQ 43.96 0.85 (+1.97%) ] reported after the bell.

    Also, China has reemerged, the market closed higher, and oil rebounded to $70 a barrel. Cramer said he thought the Middle Kingdom was pickling, or haggling for raw goods, and that’s why it seemed to disappear. The country carries so much weight that it can scare commodity producers – the Potashes [POT 93.72 2.60 (+2.85%) ], Freeport-McMoRans [FCX 60.47 1.11 (+1.87%) ] and BHP Billitons [BHP 61.83 1.63 (+2.71%) ] of the world – into lowering prices. The same strategy worked back in 1957 when China strong-armed a better deal out of rubber producers in Malaysia and traders in Singapore.

    The last three cornerstones of the bear thesis have fallen apart, too. Citigroup [C 4.14 0.14 (+3.5%) ] and American Express [AXP 31.69 1.30 (+4.28%) ] announced that credit-card defaults are going down. GM is putting more people to work building cars, and Ford’s [F 7.64 0.27 (+3.66%) ] raising production for 2009, neither of which would happen if cash for clunkers wasn't working as intended. And the public-option insurance plan that Obama wanted seems to be off the bargaining table. That’s good news for Unitedhealth [UNH 28.18 -0.30 (-1.05%) ], Aetna [AET 29.58 -0.05 (-0.17%) ], Cigna [CI 29.47 -0.21 (-0.71%) ] and Humana [HUM 35.00 -0.53 (-1.49%) ].

    These events turned bears back into bulls, Cramer said, and it’s the reason the Dow rallied today.

    “Every argument the bears had for selling,” Cramer said, “has been totally rebutted by this great market.”
  2. Yawn.
  3. Still arguing how the market must go down because the economy is in the dumpster as you're looking like a deer in the headlights in the process?
  4. That's why the smart bears waited for todays pullback to short.

    Sold a bunch of Sep 165-180 call spreads.
    Selling QQQQ callspreads by the end of the week.

    See how this one works out cramer.
  5. You sure yawn a lot. Perhaps you need a nap?
  6. Bulls: be afraid, very afraid...
  7. There's never a sure bet in this market.

    Granted fundamentals are no way to trade, I think that's quite a naive statement.
  8. While I don't share the opinion that this was anything resembling a correction, whatever you want to call it we're oversold, and have been since the close last week and are still oversold today.
  9. Your point is?
  10. That's why Cramer is a Wall St. showman not a fund manager.
  11. I have never heard Cramer say resistance and support in his show.

    His audience doesn't understand the concept of resistance and support.

    His audience is mostly paper traders with no position and no money to open a brokerage account and it's for ratings but he keeps them entertained like sports reporter.

    He doesn't ever uses charts because it is too boring and technical. The director tells him to use knife and hats and whistles stage props to keep show exciting.

  12. Actually that was my way of asking you the same thing.

    Makloda...you're a smart guy. Not sure why you waste your time with this site.

    BTW....You ripping me for my ETRD trade a year and a half ago was the best thing thing you could have done for my trading....but you have an horrible way of going about it. :)
  13. ive learnt not to listen to people who were "previously fund managers"

    shanghai went down about 5% today. lol hangseng followed suit.
  14. Hoping to see the ES close down 10+ points today.
  15. Wrong. It's a well known fact that Cramer invests based soley on fundamentals. His show has an "Off the Charts" segment where he brings on chart experts to give opinions based on technicals (don't watch the show, but I do read the recap on thestreet.com). Cramer's wife is the one who brought true charting to his hedge fund, and in his first book he admitted that he never believed in technicals until his wife showed him the true power of this type of analysis.
  16. Cramer is definitely a maniac, and has certainly been wrong in the past, but if you followed his advice and were bullish these past 4-5 months, you have made alot of money. I know, I know, broken clock syndrome and all that, but the fact remains that he does have some good ideas and does deserve at least some credit.