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Old 09-05-2007, 01:03 PM
+EV +EV is offline
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Join Date: Jun 2007
Location: In the fade
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Default Re: Shorting Cramer picks

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The idea is nothing new, obviously, but using my good friend Google I had a hard time finding any concrete guidelines or methodology to shorting his picks.

In short (pun intended), the idea is to short his stock picks on the day following his show as all the sheep blindly follow his pick and proceed to buy at the first opportunity (which is inherently against what he recommends). The short sellers then wait for the stock to settle back where it belongs and ring the register profiting from the cramer bump.

So that's the idea behind it. Do any of you actually do this, or know someone who does? Has there been any documented methodology behind it? I'm not necessarily interested in doing this myself but as I'm learning about the markets I'm interested studying these types of things.

I read the recent Barrons article and some old articles on this effect from 2006, but I'm curious if there are any current blogs or sites that actively take part in this today and document their results?

KoW

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Just shorting Kramer for the sake of shorting him is a bad idea. Don't forget that the guy is genuinely looking for stocks that will go up.

My advice would be start looking at stocks that you would want to short anyways, and try to get an exaggerated effect if he recommends them.

I bought MO at the beginning of the year after taking a harder look on his recommendation and am up ~10% on the year. Not every stock he picks is going down after the initial bump.

+EV
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