Posts tagged ‘Jim Cramer’
Fading Cramer
According to this study cited by Seeking Alpha, institutional traders routinely fade Jim Cramer’s recommendations. In fact, they found that the short interest in Cramer’s picks tended to spike on his recommendations. Their conclusion:
“Taken together, our results suggest that the aggregate losers in our event study are the Mad Money viewers who decide to buy the recommended securities when the markets open the following day, and that the winners are the market makers and arbitraguers [sic] who sell the overpriced recommended stocks on day 1, as well as the traders who sell the recommended stocks on days 2 through 12. “
