Explain....

Caution Favors the Bulls

By Jim Cramer

This was written this morning - is this to mean that cautious investors you know the ones long BIDU, GOOG, AAPL , GS and AMZN have better odds of making money from these levels than losing? The snasdaq is up 62% from the lows - if you went to Vegas what kind of odds do you think they'd give you on another15%?? I guess all you have to do is look at the NDX options - but Im to tired for that now. Cramer has been dead on with his bullishness - but he is obssesed with the notion that all hedge funds are short the market - obssesed. Do I have some shorts? Yes Do I have some longs? Yes. Can you blame people who have seen one of the largetst stock market recoveries of all time of being afraid that the market could poop again?? He goads them, chides them. A money managers number one job is to protect his clients capital - if the money manager is skeptical of the markets and is positioned that way- he is doing his job. If he/she is buying GOOG, AAPL etc so that he is not left behind he is not.
Im short AAPL right now - but I have very defined risk, Im short a call spread, so I know the max that I can lose and gain - I dont have to watch it every second.
Alcoa kicked off the earnings season with a beat the number the other day, the pundits all breathlessly talked about what a huge victory this was and the stock traded up a buck afterhours - it is now lower than when it reported - if this is what the rest of earnings season has in store get ready for a market correction.

JB