What a week, and it's only Tuesday.
It's not everyday an 85 year old institution like Bear Stearns goes out of business, but this was the week when it happened.
So let's start this week's email with a little humor from one of my favorite comedians. DA, DA, I am of course talking about former hedge fund manager, and now investing show guru host, Jim Cramer. You might know Jim from CNBC's TV show Mad Money.
On Monday, we received this video featuring Jim Cramer imploring everyone "NOT TO GET OUT OF BEAR STEARNS". I am afraid we may have witnessed Cramer going over to the dark side and losing his marbles on this one.
Take a look at this short Jim Cramer clip dated March 12th. Bear Stearns (NYSE_BSC) was trading over $60 dollars a share at the time!
You have to thank the Internet for clips like this. Jim Cramer is a great comedian, but yesterday we saw a lot of market action that was no laughing matter for the longs.
Cramer was 100% wrong on Bear Stearns. He wasn't even close, but I understand why people watch him. He is a financial joker.
When you trade with a sound "game plan" you win. When you listen to the talking heads like Cramer, you lose. The talking heads never tell you when to get out of a bad trade! It's just that simple.
Watch Cramer first - like I said he is very entertaining -
Now take a logical approach to Bear Stearns and the market in this video.
Only then can you make a logical well informed decision on who you would rather follow in the market ... Cramer or MarketClub.
I think you will logically know which decision make sense for you.
Let's enjoy a great year together.
P.S. If you missed any of the "Traders Whiteboard" educational trading series watch them here.