Hedge funds desperate to cover their short positions have made it all but impossible to catch a pullback in retail stocks, Cramer said during Stop Trading!. The funds are using any dip in share price to cut their losses.
Macy’s , Urban Outfitters – two heavily shorted stocks this winter – J. Crew Group and Polo Ralph Lauren are all on the rise. At the most, they decline only briefly, at which point the hedge funds rush in and send the stocks higher again.
“These stocks do not come in,” Cramer said, adding that the bet against retail has “backfired.”
So what’s the difference between tax “avoidance” and tax “evasion”? Watch the video for Cramer’s take on that.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org