Jim Cramer has seen no stronger fury than one of a hedge-fund manager caught with the wrong position. That happened Thursday, when portfolio managers realized they didn't have enough cyclical exposure prompted some dramatic action.
"You want a perfect example of what the heck I'm talking about? Let's talk Alcoa," the "Mad Money" host said.
The stock of the aluminum giant has been in the doghouse for ages. It roared more than 10 percent on Thursday, even though nothing happened to justify the action.
Cramer reminded investors to keep in mind that this is a market with limited participation. That means in order to buy these cyclical stocks, managers will need to sell other stocks. They are now selling the retailers and drug stocks.
"I say be careful. These rotational moves are only for the most nimble, meaning for those who truly believe that they can outrun the bears," Cramer said.