October is time for patience, not fear

A few weeks from now, when the hoopla of the 25th anniversary of the 1987 crash dies down, you'll be glad you took your time.

By Jim Cramer Oct 10, 2012 9:11AM
TheStreet.com logoStewart Charles Cohen, Getty ImagesTuesday was a hideous day. But how hideous? I think we're taking out the big winners and shooting them -- stocks like the ones I'm telling you to buy from here until the end of the year in pyramid-like fashion. There are big price breaks in stocks such as Google (GOOG) and Amazon (AMZN), and I think the jitters over the specter of earnings season are really playing havoc with them.

 

This is a tough time in the market. October always brings out the willies -- whether it's because five years ago the market was at a top or because we have seen a crash and a mini-crash in October. At times, the month gives you a clocking as mutual funds take profits before year's end.

 

It could be more pronounced than ever this year because funds may want to anticipate a change in the tax code so they can beat it at their fiscal year end, which is in four weeks for many funds.

Nothing is tougher than buying into a vicious sell-off -- like Tuesday, when Apple (AAPL) was down $12, Google was on its second plunge in a row and Amazon was taking a big header.

 

Many buyers want to be in only when the stocks are going up, not down. But I believe you have to leg in with your deep-in-the-money calls and, hopefully, hold out until January, then begin your buying.

 

Take your time. A few weeks from now, when the hoopla of the 25th anniversary of the 1987 crash dies down, I think you will be glad you did.

 

Jim Cramer TheStreet.com

 

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long AAPL.

 

 

 

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94Comments
Oct 10, 2012 9:51AM
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If the Crystal ball were real what would we see for the future of the American Economy?  I think we are in a very similar catch 22 as we were in Vietnam at the end of that war. It got  to the point American troops were being attacked by an enemy from Cambodia. Supply lines and troops were being funneled into positions to attack us but politics dictated that we could only shoot north and east but not west into Cambodia where our enemy could rest, resupply, and reattack.  Much like our troops were at that time the American worker is facing a similar lose lose predicament.  We have political policy set in place at this time which inhibits, and in my opinion  immorally so, the American worker making any headway.  The trade policies allowing products from Asian countries as well as the look the other way immigration policy towards Mexico and Central America create a downward push on the American worker and his ensuing lifestyle.  We are being held down by our elected politicians policies such that others from outside benefit while we are disincentivised to work, produce, and feel a part of our own system.  The best gift we can give ourselves as well as the rest of the world at this time is to take care of ourselves, our families, our friends, neighbors and the USA.  We have no moral obligation to destroy ourselves by and because of a policy  contributing to the New World Order. If this policy was a benefit we would all have fallen into place long ago.  It isn't good for us, it isn't good for the rest of the World, and the fact our political representatives refuse to aknowledge and own up to their commitment only more demonstrates this treasonous agreement. The resulting outlook for our  future economy is in my opinion dim. There will be no jobs recovery, no housing recovery and this market we are looking at will  shortly begin faultering as it will take more and more funny money to mask the reality most all of us already know.
Oct 10, 2012 10:19AM
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The problems -

 

1. no Federal budget in over 3 years

2. NAFTA - now has a strangle hold on America - the loser in NAFTA - AMERICA

3. Uncertainty in the tax code

4. ObamaCare

5. 40 years ago - America has to be energy independent - 40 years later ZILTCH has been done

6. An inept Government - Congress would be fired in the public sector.

7. Off balance sheet unfunded liabilities  - Federal government on down to the local level - especially with unrealistic pension returns - Social security is called an entitlement -but we pay into it and your emplyer matches what you pay.  If that is the case, then life insurance is an entitlement.

8. An economy of over regulated and over taxed business environment making foriegn courtiers more attractive to do business in.

9. Dept. of Education - when formed in 1969, first school year - high school graduation rate about 70% - now it is about 72% - and many people with a high school education have not been taught the things that they really need to be able to survive in the real world.

10. A government that snubs the Constitution and Bill of Rights..

11. An administration that picks winners and losers and who has created a divided country with class warfare.

12. A President who is polar opposite of Rev. Martin Luther King - and has damaged race relations - starting with his Whitehouse beer summit.

13. A non enforced immigration policy for 40 years

Oct 10, 2012 10:29AM
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the people in power want open borders for lowest wages. 

 

reagan did his amnesty 33 years ago.  from that ocurance the next flood surged over the line.  now we have the "dream act" and various off spring legal ideas.  except none of the power people will simply SAY the borders are now open. 

 

drive interstate 8 thru arizona (or look at it on a map) and you'll understand why arizona imposed their own rules.  if you can walk, you're in.  the rio grand "river" is a trickle.  no such thing as a **** anymore. 

 

the USA government has allowed arizona and other border states to become NEW MEXICO's without their own state approval. 

 

>>>>> the look the other way immigration policy from Mexico and Central America create a downward push on the American worker and his ensuing lifestyle.  <<<<<

Oct 10, 2012 12:39PM
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The Whitehouse admitted yesterday to the actual video recorder timeline of events leading up to the murder of the U.S. Ambassador to Libya and his security detail.  Their was no commotion or disturbances around the embassy immediately before the assault.  Just about a week ago, Obama's U.N. ambassador tried to pass it off as part of a general uprising related to an obscure video instead of another Obama operational failure.

Chicago politics in Washington.

NOW THE LYING LIAR EXPOSED:  BARACK HUSSEIN OBAMA & HIS CRONIES

Oct 10, 2012 10:20AM
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As long as markets are highly manipulated against investers and here are no real regulations coming because our represenatives are inside trading we wont trust Wall Street.
Oct 10, 2012 9:47AM
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Reality of the economy setting in............
Oct 10, 2012 12:44PM
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Happening NOW, live Col Wood is blowing the whistle on this administration about Libya.........
Oct 10, 2012 10:19AM
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BS - It has nothing to do with "October jitters" - it's all about the conniving special interests running the political parties, the super PACs and our criminally owned financial system trying to "win" the election...... these crooks know no bounds and will use any method(s) they can - buy, manipulate, lie, insurgency - to take over full control of the people, the country and soon to be, the world. The corporate owned political crooks are coming and hell's coming with them! The great plague is almost upon us....What's next - War and/or a World Rollerball Federation?.......These wannabe despots will stop at nothing......WAFJ
Oct 10, 2012 10:30AM
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BoBo kram quote -  "hoopla of the 25th anniversary of the 1987 crash dies down"

 

You should have to wear your red clown nose when you ink this kind of crap.

Oct 10, 2012 11:53AM
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 MK 44 . This is how it works. The Fed gives no cost money to the banks  by the tens of billions each and every month and THEY buy oodles of Stocks with it instead of loaning it out to small businesses that inevitably go bust

 THAT way the portfolios of the Upper Class are enhanced and THEY have more trickle down cash to spend on ya'lls goods and services. Oh sure it doesn't actually work, but that is not the real pont of it all, now is it
Oct 10, 2012 12:32PM
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The crooks of the economy are creeping out of the woodwork. As time goes on.....I think a lot more that is being kept hidden....will appear! What an administration of dishonesty!!
Oct 10, 2012 12:37PM
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Down down we go as the reality of the economy creeps in along with the crooks!!! What a MESS this administration has made!!!! Come on November!!!
Oct 10, 2012 10:30AM
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Cramer doesn't get hardly any readers. 

 

>>>>>So this is where the crazies migrated...<<<

Oct 10, 2012 10:45AM
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So here they go jacking up oil again.That way gas goes sky high and they can spin "consumer spending"going up again to make that look good.
Oct 10, 2012 11:09AM
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Romney has said if he is elected, he will fire Ben Bernanke and stop QE. That certainly sound as if it could be a ticking time bomb for the lofty market valuations we have right now.
Oct 10, 2012 11:59AM
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 "Preservation of Upper Class wealth is paramount in my mind"-- Ben Bernanke. The baseline starts there
Oct 10, 2012 11:38AM
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MK ---

Actually the Taiwan immigration change is likely part of a larger strategy in managing China.

The U.S. is going to have to let Taiwan go to China.  As the Taiwan is assimilated into the PRC system, the Taiwan citizens who don't want to live under the new "laws", will need somewhere to go.

Oct 10, 2012 11:24AM
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Wonder what Jon Corzine GOLDEN PARACHUTE WAS ?  What will Jamie Dimon's be ?

Oct 10, 2012 12:20PM
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MSN or should we say the W/S publishing office more or less has warned everybody that October is a bad month because of earnings.  So lets just say that January 2013, April 2013, July 2013 and October 2013 are going to be the same way. And of course they put the blame on the investors,.  But we all know that it's the brokers, and traders that are nervous, not the investors.  Let's put the blame on who it belongs, which is Wall Street itself!!!!

Oct 10, 2012 11:58AM
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Hey Cramer - after all the data coming out today about FBs shenanigans and how many institutional clients were warned about their revised revenue numbers BEFORE the IPO - did you have this information?

If so why did you not share it? And if you didn't why not? You also claim to be an "insider"
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