In the last 24 hours Jim Cramer has seen so many stupid decisions, that he couldn't keep quiet anymore. He has to say something, not only because it's driving him crazy but because he wants investors to understand how to do things the right way, especially when it comes to avoiding Chinese stocks.
In Cramer's perspective buying and selling stocks correctly means tedious homework, not just making false assumptions based on reading a few headlines.
"Making snap judgments are a great way to lose money, yet people keep doing it. This market is littered with snap judgments gone awry, and it's beginning to drive me crazy, or at least crazier," the "Mad Money" host said. (Tweet This)
Recently Cramer introduced the Sonny Corleone decree in honor of those who trade S&P 500 futures, flit in and out of stocks based on silly news reports and don't do their homework. Cramer called it this referring to the classic "Godfather Part II" scene when Sonny learned that Michael had joined the Marines in WWII and said, "Did you go to college to get stupid? You are really stupid."
On this same note, Cramer has therefore officially created the Andy Dufresne corollary, in honor of those who trade a company stock before actually listening to the company's conference call to find out the details.
The corollary was selected based on the movie "The Shawshank Redemption" when falsely imprisoned Dufresne speaks to Warden Norton about how he obviously needs a new trial following a man revealing that he had killed Dufresne's wife. The Warden disagreed, stating "how can you be so obtuse?" Yet, the Warden was so obtuse that Andy asked "is it deliberate?"
Cramer also noted that based on the stupidity he has seen recently, he will not be recommending any Chinese stocks because the market is way too hot.
"They have opened 14 million new accounts since the year began, and it's just steaming over there. It's parabolic, I don't want to touch anything."