There's some genuine good news out there. First, the worst-acting groups and countries from yesterday -- the insurers and Hong Kong -- got some good news. The insurers are participating in the federal bailout, something that is needed to protect the value of annuities that are hopelessly underwater; and Hong Kong rallied more than it fell, which seems like total manipulation to me, but who the heck cares if you are a bull.
Second, the Boeing (NYSE: BA) (Cramer's Take) strike might end soon, and just in time for a lot of quarters, something that a United Technologies (NYSE: UTX) (Cramer's Take) and a Honeywell (NYSE: HON) (Cramer's Take) need to have happen to save their quarters. Those two fine stocks are an easy trade off this news but will presumably open up huge because of the ridiculous futures action.
As per usual, the hedge funds that most need this lift to get in shape won't take it. They can't afford to leave the market because it is their only way to get the performance back that they need so badly to keep some of the money under management.
My take is that the hedge funds, those that need redemption monies, will let it ride, which will then put no damper on the relief rally. Given the precipitous decline at the end of the day, right now we would be (like Hong Kong) rallying back to even, which will cause a whole new round of chatter that we are at last out of the woods. The people who give you this chatter never thought we were in the woods.
They are worthless. I believe much of this buying is desperate, a solid attempt to mark things up on the fourth-to-last day of the quarter, a move that should last to at least midday tomorrow before giving in to some more body slams later in the week.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.
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Reader Comments (Page 1 of 1)
10-28-2008 @ 9:17AM
Brandon said...
We all know how credit worthy Cramer is...http://www.gotoguy.com/?p=309
10-28-2008 @ 11:26AM
beachpaul said...
You called it right. This is a bear market now. The hedge funds are trying to salvage what they can. They are trolling for fish and are finding, as they did the first half hour this morning, they are still biting. When the fish finally stop perhaps we can begin the slow slide to the bottom.
10-28-2008 @ 9:04PM
Obamas a Liar said...
After seeing Cramer in absolute panic mode at the onset of the economic crisis. I would not consider his words of questionable wisdom...