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Maybe if he spent more time reading and studying things like Joe Ross he might
learn the difference between publicity seeking television personalities and
people who trade for living. Sort of like an art critic telling a painter he
shouldn't use a brush. Didn't anyone ever tell Cramer that silence is
sometimes golden.
Cheers,
Pimm Fox
In a message dated 98-07-28 07:45:47 EDT, you write:
<< Subj: Re: Cramer on technicians
Date: 98-07-28 07:45:47 EDT
From: swp@xxxxxxxxxx (steven poser)
Sender: owner-realtraders@xxxxxxxxxxxxxx
Reply-to: swp@xxxxxxxxxx
To: realtraders@xxxxxxxxxxxxxx (RealTraders Discussion Group)
And yet Cramer has also indicated that he wants to build up technical
analysis on thestreet.com. The man speak with forked tongue.
Steve
JW wrote:
>
> >From TheSteet.Com...
>
> JW
> abprosys@xxxxxxx <mailto:abprosys@xxxxxxx>
>
> Wrong! The Trouble with Technicians
>
> By James J. Cramer
>
> You know why I can't stand technicians? Because they have a way of
> weaseling out that just drives me crazy. Take Friday. On Ron Insana's
> excellent afternoon show, Jerry Favors gives his technical rundown of the
> outlook. He sounds terrific and forceful and confident as all technicians
> do.
>
> He mentions that he is not positive or negative on the market and that he
> expects some oversold rally, but nothing special. And what would make him
> more positive? A close above 9400, validating the move.
>
> Ah hah, not to attack Favors in particular, but it is precisely this kind
> of reasoning that costs me so much money. Let's take Favors literally. If
> we did not like the market, we might be inclined to short it or at least to
> stay out of it for the foreseeable future.
>
> After all, he pronounced the market no good, so what would be the harm in
> adopting such a stance? Maybe we should be shorting this bounce right now.
>
> But then when the market gets to 9400, he wants you to be long. He wants
> you to be out for the next 500 points but be in on top of those? Give me a
> break. I want to be in for those 500 and then sell it at 9400, which is
> pretty close to the top of the range as I see it.
>
> That's precisely the problem with technicians. They buy the market when it
> is expensive and sell it when it is cheap. They don't like the market until
> it gets so rich that they feel comfortable buying. To me that is plain
> counterintuitive.
>
> That said, why do I pay any attention to charts and charting at all?
> Because it is something that people follow. It is a pattern that I want to
> understand so I know why people are freaking out or getting more confident.
> It may not be a reason for me to do so -- in fact it never is -- but I like
> to know what levels people feel secure at and when people feel that the
> panic will go on.
>
> For example, when the market declined 5% from the high on Friday -- at a
> moment when I was taking a much-needed nap -- Jeff woke me to tell me that
> we were now down 5%. I figured that would bring in some short covering as
> those who had bet against the market might feel like taking some of that
> win off the table. It did bounce and hold; good call.
>
> But that is not the same as avoiding a market until it validates a new
> high. That kind of thinking gets you in at the top and out at the bottom.
> That, I know, is just plain wrong.
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From: steven poser <swp@xxxxxxxxxx>
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Subject: Re: Cramer on technicians
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