“Contas equilibradas não significa superávite”

[Ulisses Pereira]

"Hedge Funds Will Rush to Puts, Boost Dow"

By James J. Cramer
12/22/2003 09:19 AM EST


"The logic's unassailable. Underperforming hedge funds will come flying in to buy puts today in one last desperate gambit to show why they missed the rally, because the world is an uncertain place rife with terrorism.

When I talk with hedge funds that have kept one foot out the door at all times, invariably they cite the macro terror backdrop as the reason they held on to too much cash or had too many puts or stayed too bearish. The increased threat alert level suits them fine because it reminds others in the money management business that they can't just walk around 100% long anymore.


Of course, that judgment by the hedge funds turned out to be wrong. You can't walk around 100% long because you need to be 200% long!

So, we will see some weight on the averages as the puts get bought. But if nothing terrible happens in the next few days, look for still one more rally into the new year, one that could take us up to Dow 10,500 on the strength of all these shorts that will be put on today."

(in www.realmoney.com)