Cramer’s Latest Flip-Flopalooza

C

Chartiste

Some people totally dismiss Cramer, but since his recommendations often move stocks, he can’t be ignored. Yet, his flip-flop on Friday was so mind-boggling, I don’t know how the market can take his calls seriously any longer:

At 1:59 PM EST these were his exact words at the very end of his LIVE radio show:

“Caterpillar down 9. NOT AN OPPORTUNITY. I’d rather have you be away from that. Please be very careful with anything that is industrial or oil---those are going lower.”

Then, less than forty minutes later, he appears on CNBC’s Stop Trading segment screaming that CAT’s sell-off is totally overdone and that their business is on fire in China and so it is a “BUY BUY BUY!!!!”.

I know he has a reputation for flip-flopping, but Friday’s stunt takes the schizophrenic cake. It makes one wonder if he was trying to get people short so he (not him directly, but funds tipped off to what he was going to say on the TV segment) could screw the shorts when he said BUY BUY BUY forty minutes later. Can he do this because his radio show is on CBS and the TV show is on NBC?

BTW, I was not in CAT, but was just amazed at the entire episode. The stock did bounce over a buck after his call to buy.
 
It is amazing that a guy with a great hedge fund track record like Cramer can turn into the lunatic he is today with the horrendous trackrecord of his Action Alerts Plus portfolio he runs at Realmoney.com.
 
Quote from makloda:

It is amazing that a guy with a great hedge fund track record like Cramer can turn into the lunatic he is today with the horrendous trackrecord of his Action Alerts Plus portfolio he runs at Realmoney.com.
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Believe it or not, but there's crooks on Wall Street!
 
Maybe the flip-flopping is due infact that he is a trader (day trader maybe?). Buy for a minute can be a sell the next minute for a trader
 
You look at his record now and have to wonder if, or perhaps surmise, that his claimed success at runing a fund was due to trading on inside information. He hasn't shown us anything since that would suggest he is someone you'd want to take advice from; yet his book, which i have read, does evidence a good understanding of the markets. He's an enigma. I don't mind his nutty behavior, it is afterall entertaining. I find it almost as entertaining as the comedy channel -- the few times a month i turn on my 12 in TV set that is.
 
The best $400 I didn't spend was when I cancelled the automatic subscription renewal to Action Alerts.
When JC started to use the same reason to sell one of his recommendations that he used to use for buying it, I pulled the plug. I now trade the old fashion way, using your own brain and homework.
The only thing I will give Jimmy credit for is getting me into trading.
 
Even more amazing is there are still posts like this and people listening to the psycho.

I *USED* to find Cramer interesting, long ago.

He has become a foul and vile personna since his Mad Idiot TV show.

Turn the buffoon off, waste no more time on him.
 
Money can be made on the Cramer Effect if you know what your doing.

First, the Cramer Effect does not last forever. Sometimes a day, sometimes a few days. Sometimes weeks. Usually the next earnings call calms things down a bit.

Second, the Effect only usually is good for thinly traded stocks with a small float.

Third, the Effect depends upon how Cramer words his presentation. When he says "Google" and the stock he is recommending in the same sentence, the stock usually soars.

Here are some good examples:

REDF- Cramer stated that this was going to be the next Google. This has a 8 million share float. As you can see from the chart, the stock nearly doubled in a few days.

DIVX- Cramer stated that Google was DIVX's main customer. Instantly the stock shot from 19 to 24 and it still trades pretty high even today.

There is also the other side of the "Cramer Effect". When the Effect finally wears off, it creates a nice V-Bottom. As the Cramerites exit out of their positions, it sets off all these stop-loss orders. The best example is DKS. If you got into DKS after it created the V-Bottom, then you would have had a very nice return today.
 
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