Wall Street fecha semana sem rumo. Grandes tecnológicas pressionam

[Ulisses Pereira]

"Watch Out for the New Seasonal Put-Buys"

By James J. Cramer
06/20/2003 10:50 AM EDT


"Oh no, macro fund terror-alert put-buying ahead!

Yes, as we inch toward July 4, the hedge funds that are completely hung up on terror prospects and warnings -- there are a myriad of them -- once again will load the boat up with July puts to be sure they profit from the suspected terror-alert worries, if not terror itself.


This has become an annual rite. It will cause the next big rally if nothing happens, because these funds can't resist taking down the protection plus, meaning that they intend to make money off the worry.

I am not suggesting that they are unpatriotic; far from it. They just expect things to happen that will be bad and they can't help themselves. They have to buy those darned puts.

You can see them come in with the SPX put-buying. It will start right after expiration, perhaps as early as next week.

This process of massive put buying ahead of feared date has been a staple since 9/11. It produces periodic rallies after events when nothing happens.

It will do so again.

You have been warned. "

(www.realmoney.com)