August 1, 2008; Jim Cramer Confirms Call for a Bottom!!

Jim Cramer again yesterday confirmed his call for a bottom in the stock market. Again, remember he called a bottom in March when the Dow hit the 11,600 area. The market then made a new low beneath that by about 1,000 points in July. He was wrong then. Now earlier in this week on the heels of the huge rallying that took place he's calling another bottom in the stock market. Yesterday on CNBC's "Stop Trading" he confirmed his call for a bottom in this market. He's dead wrong. It's possible a short term bottom is in, but THE BOTTOM is definitely not in.

So far he's 0-1 in calling market bottoms, and I'm 1-0. Let's keep score and see how useful this clown really is. My feelings about Cramer is that he's an entertainer and should be viewed as such. But many people invest and trade based on him and a lot of people lose, and will lose, a lot of money in the coming months based on his advice. His first mission is to entertain you, keep his viewership, and gain new viewership, and his next mission is to try and make money while also entertaining. Entertainer first, stock analyst second. No one should buy or sell stock based solely on what he says. He's always looking for long positions, like most money managers, and he has been right and made people tons of money over the past few years. But we've been in a huge bull market for decades. A monkey can throw a dart at a dart board full of stock ticker symbols to buy and make money. The trick is knowing when you need to protect yourself, or speculate and get short. Cramer isn't doing that. He needs people to watch his show. If he recommended everyone move to cash and buy treasuries he'd have a two minute show and he'd be off the air. So he has to continue to find "buy stories" and entertain you to keep his show going. He's an entertainer and should be viewed strictly as such. I'm upset with him and will rip him on this blog because I know people invest based on his advice, and his advice in the coming months will be toxic for the average retail investor/trader. Here's Cramer's article confirming his call for a bottom yesterday: http://www.cnbc.com/id/25950912

The market has not bottomed, and will selloff significantly in the coming weeks.