Friday, May 19, 2006
Real Money Blog
Can't Resist Looting the Battlefield
05/19/2006 12:15 PM
In this article, Cramer suggests option expiration has a hand in this week's decline. Also, Cramer titles FWLT "pound for pound, the worst-trading stock I have ever owned."
He attributes this week's decline to ETF selling and margin liquidations, reminiscent of 2000. However, this time stocks are not expensive.
He exclaims: "Right now, the fundies are not in control."
He mentions stock for sale in HAL and AL, despite blowout quarters.
Bottom line: Cramer sees this decline as a buying opportunity. He will continue to "pick away" at stock he thinks are inexpensive, despite the critics (even at thestreet.com).
He sums it up: "But if it's such a losing strategy, why did it make me so much money, including during one crash, one mini-crash, two meltdowns of the Nazz and the financials and in 2001? "
Strikes Could Help Form a Bottom
05/19/2006 11:19 AM
In this article, Cramer believes a "bottom" is forming. His evidence is a list of about 20 stocks that are pinned to its expiration price.
He exclaims: "What makes me think that shakeout is the last one is that many of these stocks are on the other side of the strike, the lower side, which means that the puts will be sold and the stocks will be forced back up to the strike, which is higher than where the stock is now."
No Support Structure Under Metals
05/19/2006 10:55 AM
In this article, Cramer cites the freefall in the metals. They remind him of 2000-2001, because they are being targeted by the Fed.
Bottom line: Cramer believes the Fed has to overshoot and he likes AL and HAL at these levels.
05/19/2006 12:15 PM
In this article, Cramer suggests option expiration has a hand in this week's decline. Also, Cramer titles FWLT "pound for pound, the worst-trading stock I have ever owned."
He attributes this week's decline to ETF selling and margin liquidations, reminiscent of 2000. However, this time stocks are not expensive.
He exclaims: "Right now, the fundies are not in control."
He mentions stock for sale in HAL and AL, despite blowout quarters.
Bottom line: Cramer sees this decline as a buying opportunity. He will continue to "pick away" at stock he thinks are inexpensive, despite the critics (even at thestreet.com).
He sums it up: "But if it's such a losing strategy, why did it make me so much money, including during one crash, one mini-crash, two meltdowns of the Nazz and the financials and in 2001? "
Strikes Could Help Form a Bottom
05/19/2006 11:19 AM
In this article, Cramer believes a "bottom" is forming. His evidence is a list of about 20 stocks that are pinned to its expiration price.
He exclaims: "What makes me think that shakeout is the last one is that many of these stocks are on the other side of the strike, the lower side, which means that the puts will be sold and the stocks will be forced back up to the strike, which is higher than where the stock is now."
No Support Structure Under Metals
05/19/2006 10:55 AM
In this article, Cramer cites the freefall in the metals. They remind him of 2000-2001, because they are being targeted by the Fed.
Bottom line: Cramer believes the Fed has to overshoot and he likes AL and HAL at these levels.
