The Cramer Effect
Well, it HAS been a while since the last post. I've been watching a lot of internet stock trading the last few days. And one of the things I noticed and have been wondering about is what I have named the "Cramer Effect". The effect isn't unique to Cramer, that's just where I noticed it.
I noticed this today while watching the market and listening to Cramer at the same time: the "Cramer Effect" seems to be a good short-term (minute or two, tops) play. Two days in a row now, he's mentioned a stock (today it was ENER), and there was an immediate, huge volume and price spike. I watched ENER climb about $1.20 a share in 2-3 minutes, from roughly 27.33 to just over $28.50. Same thing yesterday with mention of CRXL (that might have been one of the other commentators, I forget his name at the moment = Neil Cavuto, I think). Again, the stock went immediately into overdrive.
Anyway, how would this be as a funny-but-serious trading strategy? Jump on something as soon as it's mentioned, buy at market, wait 2 minutes, and sell. There's got to be other people thinking like this. Any comments?
I noticed this today while watching the market and listening to Cramer at the same time: the "Cramer Effect" seems to be a good short-term (minute or two, tops) play. Two days in a row now, he's mentioned a stock (today it was ENER), and there was an immediate, huge volume and price spike. I watched ENER climb about $1.20 a share in 2-3 minutes, from roughly 27.33 to just over $28.50. Same thing yesterday with mention of CRXL (that might have been one of the other commentators, I forget his name at the moment = Neil Cavuto, I think). Again, the stock went immediately into overdrive.
Anyway, how would this be as a funny-but-serious trading strategy? Jump on something as soon as it's mentioned, buy at market, wait 2 minutes, and sell. There's got to be other people thinking like this. Any comments?
Labels: Cramer effect
posted by pyroman at 4:25 PM
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