Cramer loves an arcane reference about as much as Dennis Miller. Even when he mentions a recognizable movie, book or Greek parable, the Mad Money host dives headlong into it. Such was the case during Tuesday’s show, when Cramer turned the most recent battle between the bulls and the bears into a modern-day Gettysburg.
Gen. Grant, the Confederacy, the Wilderness – you name some aspect of the Civil War and it made the segment. (Bull Run made the cut, too, for obvious reasons.) But for you, the loyal reader at home, we’re going to keep this as simple as possible. Here goes:
A change in the “uptick” rule has freed bears – massive short-selling hedge funds, in this case – to drive stocks into the dirt for a hefty profit. Rumors of Lehman Brothers’ illiquidity had these shorts hovering, smelling blood, but yesterday’s $4 billion offering sent them running. Cramer urged others in the cohort – Wachovia , Bank of America , Washington Mutual – to follow Lehman’s lead. It's only a matter of time, he said, before the shorts focus on a new victim.
And herein lies Cramer’s point: Until the Securities and Exchange Commission reinstates the uptick rule, these bear raids will continue to happen, making 391-point days in the Dow short-lived.
So enjoy the rally while you can, people. If the SEC doesn’t step up soon, Cramer said, Appomattox won't be happening any time soon.
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