CNBC's mega-star Jim Cramer says "Sell Everything!" in "Cramer: The Way Ahead Is Down"
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Excerpts from Cramer's 06/27/08 - 07:11 AM EDT article:
"Sell everything. Nothing's working. Revisit when the prices are adjusted for a big recession, soaring inflation and a crushed consumer. Sell at 12,000 and come back at 10,000. Even better: short it. "I wonder where Cramer gets off saying sell at 12,000 when the DOW was already 600 points lower and his article was posted today!
"The negativity coming into today's session is as thick as I can recall nearing most short-term bottoms. The issue is there is not enough fear out there. Despite the consensus, which obviously creates a need for lower prices before it is worth buying, there isn't a big spike in the VIX, there isn't a gap down, or a crescendo of selling. There isn't even any volume. So while the bearishness is real thick, the selling isn't."and
"I think we lack a climax because we haven't had a climax, some session where people can say, "I don't care how much lower GM goes, I know it is a buy." Same with Citigroup. "and
"All my indicators say that it is extremely dangerous to short here: oscillators, attitudes, polls. They haven't worked either -- or yet. I think the palpable gloom simply does one thing -- it'll be a stair-step down rather than a cascade, where you can make a little money when you are on the stair but then give it back on the next step, until we get to some level that better reflects a GM bankruptcy or a Citigroup collapse, one or the other, or both."Market Summary:
.DJIA = 11,379.73 -73.69 @ 1:00 pm ESTWho is right? Who will be right? Discuss both men at our facebook discussion forums for:
.NASDAQ = 2,308.05 -13.32 @ 1:00 pm EST
.S&P500 = 1,280.24 -2.91 @ 1:00 pm EST