How to Interpret Cramer

As I have said before (and my blog quotes a study that verifies this) you make money on Cramer by carefully reading between the lines and following what he is really recommending as a sale, not a buy. He is reluctant to go negative, so you have to know the area he is talking about.

For example regional banks, covered in the cite shown below.

I have a friend who bought $10,000 FITB at $2 something and now has quite a profit. Reading the following by Jim Cramer, you will note that he does not mention FITB. This is a key point and my friend should GET OUT NOW.

(Should I tell him? What are the implications for Cincinnati, where Fifth Third is so influential?)

http://www.thestreet.com/_yahoo/story/10546019/1/jim-cramers-best-blogs.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

The Word "Bank"

(c) 2009 F. Bruce Abel



It occurs to me that for the bailout to work we must wipe out a word from our vocabulary: "Bank," as in "Oh, you work for a bank, do you? I don't trust you, even though I work for a bank myself. In fact I don't even trust myself here at this bank, because I am addicted to trading credit default swaps."

We must now create another word, another category.

What is that word? I don't know. What about "Trank." This implies trust. But, now that I think about it, the phrase "Bank Trust Department" must be removed also.