Cramer -- A Reevaluation Leading to Wobbles and Whoppers

(c) 2010 F. Bruce Abel

The market has knocked the whanker-pins out from Jim Cramer's gyroscope.  He's wobbly now.  On Friday he said he had told his fans to sell out of the market.  Then he said this whopper:

"You were to sell as various of my bullet-points were satisfied so you avoided today's crash."

What he had said when he set up the bullet-point thesis in June 6, was that the market was not safe until all of the bullet-points were satisfied.  Check it out by clicking onto my "Cramer Yesterday" label.

At a deeper level Jim Cramer's show Mad Money depends on their being a market with which to recommend stocks.  There is barely such, in his mind now.  It's a casino.  Bet on black or red.  That's it.

So he has set up bullet boints to be "bully points" -- bullying us to believe that his listeners made money this month if they followed him.

Oh, and he took a week's vacation.  What's about that?  What are we Pajama Traders supposed to do?  At least give us some notification that you're doing it.  Don't just leave! (us hanging)

Monday FX Brief: Stimulate or Retrench -- Seeking Alpha

(c) 2010 F. Bruce Abel

According to Cramer us "pajama traders" key off the Euro to decide whether to buy or sell the American stock market.  So here's today's report on the Euro after the G-20 meeting in Toronto over the weekend, which Krugman says was so devastatingly bad, and I agree.

By the way, if the Euro is up on a given day then the pajama traders buy the American market, right?


Monday FX Brief: Stimulate or Retrench -- Seeking Alpha: "Euro – The euro is a little weaker at $1.2336 this morning as investors are swift to side with a long dollar position on account of the apparent likelihood that fiscal stimulus will stroke the growth nerve-endings and help lengthen the recovery process. However, as German Chancellor Angela Merkel pointed out, thus far the stimulus measures have done little to alleviate the rate of U.S. unemployment. And without addressing Europe’s fiscal shortcomings, the spiral would continue to drag the Eurozone lower. The euro weakened against the Japanese yen to ¥110.28 and also against the British pound to 81.94 pence."

Cramer -- What Does He Mean by Pajama Traders?

(c) 2010 F. Bruce Abel

A careful watcher of Cramer realizes that his sudden references to pajama traders is huge.  They are highly-negative references, which raises the question of exactly who is his audience.  This is a fundamental question.

I will be expounding on this on this blog.

Cramer's Mad Money - The Pajama Game (6/17/10) -- Seeking Alpha

(c) 2010 F. Bruce Abel

"Ludicrous." This concept of ludicrous "Pajama" traders is newish with Cramer.  Read further. Wait just a minute! Can he be serious that there are enough of them -- I'm one -- to match the really active hedge funds that are trading off milisecond-actions?

He needs to do a lot more on this topic to fully flesh it out.


Cramer's Mad Money - The Pajama Game (6/17/10) -- Seeking Alpha: "Cramer said the 'pajama game' was responsible; traders who sit at home in their pajamas with their laptops and trade at a furious pace with the wrong information. Double and triple-leveraged ETFs only exacerbate the problem.
Cramer has spoken before about the problem of high frequency trading which now comprises 80% of trades compared to 30% 4 years ago. False information can make unsustainable rallies given the intensity of trades. For instance, traders started buying because the CurrencyShares Euro Trust (FXE) seemed strong, but the euro was stronger only because of bad news on the home front.
It doesn't help to be the voice of reason when trades are made in a flash. Unfortunately, for now at least, the fate of stocks “rests in their ludicrous hands,' said Cramer."