Cramer is useless when it comes to making calls simply because he's wrong as often as he is right. Like a chimpanzee throwing darts to pick stocks. And of course he makes so many contradictory calls, no matter what happens he can be right by cherry picking what he said in the past.
But he is still right some of the time. And this was one of those times. Probably dumb luck or he overheard something someone said. Still it's probably as dangerous to always be a Cramer contrarian as it is to be a Cramer cheer leader.
I see this Cramer contrarian indicator #$%$ posted all the time. It is BS ... if ALL of his calls were aligned with a GS hoodwink strategy, then he would lose credibility and the "game plan" would become ineffective. You on the other hand predicted BX was going to $40 in no time, just a few weeks ago and then the largest price drop since last summer occurred. Now you are back on the bear side calling for PPS to drop under $25.
Which contrarian indicator should we go with ... Cramer or the sucker? I think neither.
I know how you feel. I just bought 1,000 shares and winced when I heard it too. There are a bunch of traders that do nothing other than short Cramer's long calls right after announced. But, I am not too concerned. When it comes to Cramer, it is more of a roll of the dice... I am in this for the long term, and I don't believe in using margin. So, if my portfolio loses 50%+ over a period of time, I can still ride it out.