Some guy showed up early on CNBC to talk about his own little "Watch list" thru his own special program that tracks what Congressional Reps and Senators are buying in Stock. Seems that many are buying stock in companies that are directly affected by pieces of legislation. While the President has to put his investments in a trust, your local reps are making money off your misery. During the drill drill drill debate Pelosi and others had bought into wind farm stocks. They all seem to be doing it. Even Senator Paul has nearly half his investments in gold related investments. Jim Kramer trades on politics all the time and he is often wrong. He push natural gas for a year or more and until the oil spill, natural gas stocks were out of favor. That can be a good time to buy in, but you might have to wait a year for it to move.

Unless you have a sizeable brokerage account, you cannot sell short on your own or even trade options. When you buy a stock thru mutual funds, those fund managers can loan out the stock to trade options and they are paid for that service. You buy a stock on a dip and it turns out to be heavily shorted and you keep watching it fall. Most investors dont know where to look to find how heavily a stock is being shorted.

By the time most people have bought into a stock, the mutual fund and hedge fund mgrs. already locked in their trades. When they sell out, you are left holding your higher priced stock. If you follow guys like Jim Kramer, they are up on a stock one day and a month later they are dumping it. Rarely do the stocks that he pushes, have good long term fundamentals. He doesnt trade like Buffet.