I was just watching Mad Money and the bald man was talking about how some people use his show as their "research department". On a side note, the bald man has been doing well lately. Im looking at this JSDA stock that keeps soaring up to new unbelievable levels without stopping. All his other picks seem to have been doing well with only a few exceptions. Look at NYX! I know there are lots of traders on here who wont admit it, but they do use the bald man as their research director. All this trading in those Mad Money picks cant be from a few housewives and a sharebuilder account. I figure lots of prop traders probably get their ideas from there too. I was driving today and considering a strategy where I just game Cramer's picks. I dont mean blindly buying in afterhours during the show, but using strict technical analysis to long or short his picks...and studying in depth trends of each time he makes mention...and dont forget risk management,stops, etc. I know when he says a stock is the next ....google...hansens...ebay...then thats a sure sign that volatility is ahead. I remember the run on REDF where he said it was the next google and it shot from 14 to 33 like it was the next google. Then there was GMKT which he proclaimed the next ebay and that went from the teens to the high 20s. Who could forget the NYX runs that he has created? Now its JSDA which he has pumped from 10 bucks to 24 declaring it the next Hansens. It may sound like a sad strategy, but the bald man might become my research director in the future.
To be fair you have to admit that REDF which Cramer pumped from 14 to 33 is now trading at $17. GMKT..... back to $16.50. It is not magic that his picks go up because all the sheeple buy it on his recommendation. But many companies simply fall back to earth once the Cramer sheeple's have been lured in. The ones that most people already have an idea of and were climbing (GOOG, AAPL, etc..), Cramer is usually a step behind since by the time he is discussing it, the view is already out there. Cramer is just entertainment. You would not rely on a TV lawyer or doctor for significant advice, so you should not rely on a person whose sole purpose is ratings and entertainment for financial advice.
You're about 2 years late with your analysis & strategy. Maybe you should do some searches, certain ET members have posted the results of their trading on Cramer. I did some stuff with his calls as well, in fact, one of my top daytrading stocks in 2005 was because of a Cramer pump. It's old now. The Cramer fade, Cramer buy strategies are played out. Sometimes a stock used to gap up and churn for hours since too many traders were sitting on both sides. Consider how many stocks he mentions per week. At a certain point, it's just random. You can use his show to get ideas, but blindly taking one side or the other, you can probably do better by closing your eyes and throwing darts.
I dont mean to use his picks as a long term investment, but a focused short-term trade to long/short. I view Cramer as a volatility event much like the rumors of hurricanes today was a volatility event. The volatility event comes and sends a price shock with volume. Sometimes the effect is short term or of a longer breadth, but eventually the effect is gone.
I've actually only watched Cramer about 4x on TV... that funny horn thing and the BOOOOYAAAAHHHH is sooo irritating. And it appears he covers like 30 stocks or something at a time in his commentary, hey, a clock is right 2x a day. He may in fact move markets, but it's too unpredictable from everything I've gathered. But then, I'm probably just sour graping because I can't sit still for an entire episode of his silly show to actually learn anything. :eek: I do better than he does anyway. I always find it amusing that people insult each other here by accusing others of getting all their insight from Cramer.