Remember when I wrote about how idiotic Jim Cramer is back in December when he was saying that Bank of America might file bankruptcy and he hated the financials? That was when they bottomed before rallying huge. Just last week, he began saying how much he loved financials, after that giant up move. Here is the chart of the XLF – the S&P financials sector spyder:
I know I don;’t need to state the obvious, but I will, because I enjoy pointing out how completely stupid Jim Cramer is, and how he should be banned permanently from television, or from any medium where he can give investors terrible advice. You can see in this chart that he came out negative on the financials in mid December, right when they hit there recent low, then they rallied about 22%. Then, last week, right at the peak, he said he loves the financials. Since then they have fallen (so far) about 3% including today’s drop. As I have stated many times, a reasonable strategy would be to do the exact opposite of what Cramer recommends.