Comments on: Trying To Make Sense Of Cramer’s Advice http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html Freshly squeezed market commentary & analysis Sun, 08 Nov 2009 02:55:07 +0000 http://wordpress.org/?v=2.0.2 by: MS http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35090 Tue, 14 Oct 2008 20:58:07 +0000 http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35090 I have often said of Mr. Cramer: if he were any good at running a hedge fund, he'd still be doing it. I have often said of Mr. Cramer:

if he were any good at running a hedge fund, he’d still be doing it.

]]> by: Brad Reid http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35088 Tue, 14 Oct 2008 20:28:32 +0000 http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35088 Cramer's prior successes as a hedge fund operator were likely owing to the almost hyperbolic bull market he was caught up in; that, and enough "wires" out and around the brokerage world to sort of get the heads up on some trades and positions he could benefit from. Cronyism, likely. But, he has no system, either fundamental or technical. Cramer devised an odd admixture of pedestrian trading rules, but similar to the way a leaky dam is plugged, when a leak occurs he simply adds more rules. He seems to be out of "thumbs" to plug the dam leaks. He is an extemporaneous "back tester" meaning that instead of using a computer to "model" a solution from old data, he adds new rules almost daily adjusting on the fly for his program viewers. I wonder how much of his investment net worth has evaporated in the past several years? Perhaps, a nice salary covers some of this. It's hard to fathom the sort of damage he has done to anyone who has followed his advice, though there seems to be an endless supply of sheep out there still calling into his program. Maybe they like his occasional honesty regarding his many failures? But, his followers seem to treat these mistakes as exceptions lacking a way to actually quantify his overall results. I know one thing: He is surely the poster boy for the "Efficient Market" theorists. JBR Cramer’s prior successes as a hedge fund operator were likely owing to the almost hyperbolic bull market he was caught up in; that, and enough “wires” out and around the brokerage world to sort of get the heads up on some trades and positions he could benefit from. Cronyism, likely.

But, he has no system, either fundamental or technical. Cramer devised an odd admixture of pedestrian trading rules, but similar to the way a leaky dam is plugged, when a leak occurs he simply adds more rules. He seems to be out of “thumbs” to plug the dam leaks.

He is an extemporaneous “back tester” meaning that instead of using a computer to “model” a solution from old data, he adds new rules almost daily adjusting on the fly for his program viewers.

I wonder how much of his investment net worth has evaporated in the past several years? Perhaps, a nice salary covers some of this. It’s hard to fathom the sort of damage he has done to anyone who has followed his advice, though there seems to be an endless supply of sheep out there still calling into his program.

Maybe they like his occasional honesty regarding his many failures? But, his followers seem to treat these mistakes as exceptions lacking a way to actually quantify his overall results.

I know one thing: He is surely the poster boy for the “Efficient Market” theorists.

JBR

]]> by: eber terandst http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35087 Tue, 14 Oct 2008 19:20:39 +0000 http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35087 I agree, Cramer is throwing everything to the wall to see what sticks. But, I would NOT go into any details about WHAT he is throwing. Let's not be scatological. eb I agree, Cramer is throwing everything to the wall to see what sticks.
But, I would NOT go into any details about WHAT he is throwing. Let’s not be scatological.
eb

]]> by: BachFan http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35086 Tue, 14 Oct 2008 17:15:28 +0000 http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35086 Re Cramer's wife, Karen, I thought I read somewhere that they had separated? Maybe that explains why Cramer's trading calls have been all over the place. Re Cramer’s wife, Karen, I thought I read somewhere that they had separated? Maybe that explains why Cramer’s trading calls have been all over the place.

]]> by: marco http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35075 Tue, 14 Oct 2008 02:09:46 +0000 http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35075 When Cramer ran his hedge fund, his wife was the adult supervision for his baser trading instincts. She kept him in business more than once. Based on what we've seen from him for the past few years, I think his wife now stays out of it; he's all over the place. When Cramer ran his hedge fund, his wife was the adult supervision for his baser trading instincts. She kept him in business more than once.

Based on what we’ve seen from him for the past few years, I think his wife now stays out of it; he’s all over the place.

]]> by: Greg Feirman http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35067 Mon, 13 Oct 2008 19:54:08 +0000 http://www.tradersnarrative.com/trying-to-make-sense-of-cramers-advice-1959.html#comment-35067 To be fair, it can make sense for him to have said sell last Monday and then buy later in the week after stocks were down 12%, 14%, 18%, etc.... At that point, it starts getting priced in. The flip flop yesterday, however, strikes me as a little bizarre. Dow 6700 on Monday, 4700 on Tuesday and then "don't sell" 7 hours later???? That's a flip flopping. Nice work here by the way. I think your technicals and sentiment analysis are really good. I'm a regular reader. To be fair, it can make sense for him to have said sell last Monday and then buy later in the week after stocks were down 12%, 14%, 18%, etc…. At that point, it starts getting priced in.

The flip flop yesterday, however, strikes me as a little bizarre. Dow 6700 on Monday, 4700 on Tuesday and then “don’t sell” 7 hours later???? That’s a flip flopping.

Nice work here by the way. I think your technicals and sentiment analysis are really good. I’m a regular reader.

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