Tuesday, March 18, 2008

Beware of Cramerica - Wachovia (WB) price action

Just thought this was interesting... Jim Cramer said all banks are a sell yesterday. In after hours Wachovia (WB) trades down 3%.

Today we get a massive rally that pushes WB up 10%.

If you listened and blindly followed Cramer, you are out 13%. And if you listen to others it is hard to get the conviction that lets you stand firm. I bet a bunch of those selling after hours are back in at these prices.

2 comments:

Richard said...

I'd have to agree with you, this guy is fishy.

Jimmy said...

I disagree.

Cramers advice was to avoid financials, which was the correct advice. The people that bought financials on weakness after Monday are fools. The fact that financials surprise rebounded does not make his advice wrong.

Plus the fact that financials were almost all up double digits. Singling out WB is a bit harsh.

Gotta love the amount of influence he has though. Great research on this post! I guess Cramerica controls 3% of the market, eh? :)