Be Careful of What You Read and Hear on CNBC

I know the market is dynamic and things change. Remember the old Wall Street Rhetorical Mantra, “Do you want to be right, or do you want to make money?” So there's nothing wrong with being wrong, in fact many of the best traders admit that they are often wrong more than they are right. If you can't change your mind in an instant as conditions change, or put another way, adapt-you're dead.

However, the incomprehensible, pure arrogance in which Jim Cramer lectures his audience, demands that I print his egomaniacal utterances of July 30th. Remember, this is the guy that claims his meltdown on CNBC forced the Fed into action. How absurd is that? The only thing that stood out to me in that entire tirade was his complete lack of respect for his female co-host. I really expected that he would come out with an on-air apology to her (did he?).

-“I'm sticking my neck out and saying we won't revisit the lows of July 15th”
-“The Bull Case is so tight”
-“MER gave us a blue print to flush the CDO paper out of the system”
-“Mer cleaned the love canal”
-“I'm feeling better about this second day of rally, I bet it continues tomorrow”
-“My bottom call isn't gutsy, it's smart”
-“Bye. bye bear market, say hi to the bull and don't let the door hit you on the way out”
- “Yes, I called the bottom”

Right now, MER is down over 27% since the Bottom of 7/15, down near 70% from its January highs, and as of now, down just about 26% today alone! I won't even go into the market in general, it made new multi-year lows yesterday and some today. XLF specifically, as he was talking about financials mainly, made a new low below July 15th.

While this may be a “bottom”, we won't know that until it's a matter of history, anyone in the market as long as Jim Cramer has been, must understand the concept of Bear market bottoms retesting their lows. To think that those lows wouldn't be retested and/or breached, is naïve. To suggest to people that the new Bull market has begun, is dangerous. And just a few days ago I read him saying in an interview, words to the effect of, “If you think you may need money that is in your portfolio, anytime within the next 5 years, I suggest you get that money out of the market.” He went on to say that based on his calculations of Dow component stocks, he sees another 20% decline from current levels-and that in Dow stocks! Blue Chips! Hardly the picture of the new Bull market. It wasn't a gutsy call, it was a foolish call.

Whenever I hear prognostications from Jim Cramer, a word association immediately pops into my head, “AGENDA!” This guy was telling people to be contrarians and BUY oil the next time oil declines on a Wednesday inventory report. How the hell are his millions of viewers going to take advantage of contrarian principles, when tens of millions are all doing the same thing? And don't forget, this “Buy oil” call came within a few weeks of oil's exact top! He said go out and buy “food” companies, said they were the next great thing coming down the pipe, then reversed his call two weeks later and said to sell them! AGENDA!

So there you have it! Once in awhile I remind people that CNBC is there, in existence for one thing, to sell ads and make money. Remember that before you act on their council. Also remember that Wall Street and throw in the CNBC junkies, are sheep. They all do the same thing at the same time. Do you want to be a sheep or would you rather be the wolf?