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  • Thursday, June 22, 2006

     

    Real Money Blog

    On Down Days, Look to Buybacks
    06/22/2006 3:46 PM

    In this article, Cramer claims buybacks are "saving the day again." He cites companies with buyback programs, such as: BAC, UTX, BBY and NKE.

    He exclaims: "You can hide on down days, but only in stocks like these."

    Get Stuck on Johnson & Johnson
    06/22/2006 3:20 PM

    In this article, Cramer touts JNJ, while mildly panning BSX.

    He exclaims: "J&J, the cheapest it has been in years with a great balance sheet, great momentum, and little litigation risk -- that's for me."

    Kraken Market Gives Us Whiplash Again
    06/22/2006 1:59 PM

    In this article, Cramer feels the market will not rally today, due to it being down more than 60 points.

    He exclaims: " Drat! It can't do it. Once the Dow is down 60, it can't recover. The swoon is just painful, because the next pattern is down 100. Man, this is just awful stuff."

    Furthermore, he suggests the market volatility is keeping buyers out of the market, especially on down days.

    Rally Off a Swoon Would Silence Bears
    06/22/2006 1:25 PM

    In this article, Cramer is hoping for a midday rally to send "a signal that this market is healthier than the bears think."

    Furthermore, he believes the Nasdaq's new tell is QCOM, not the old guard of DELL, MSFT, YHOO, CSCO and GOOG.

    Bottom line: Cramer wants the bulls to make a stand.

    NOTE: Cramer just contradicted his earlier predictions of a weak market for the rest of the week.

    On a Slow Day, the Fed Looks Bigger
    06/22/2006 1:08 PM

    In this article, Cramer cites the back and forth nature of the market and believes the bulls have the edge-- due to the upcoming earnings season.

    He exclaims: "All I am banking on is good earnings coupled with a lack of a macro picture in July. That's the backdrop that gives the edge to the bulls."

    Also, he cites strength in GM as being "a very real turn."

    Two Positives: Down Opening and Metals
    06/22/2006 10:26 AM

    In this article, Cramer is pleased with the market opening down.

    He exclaims: "We have so many new people in the market who always regard a down tape as poison. They are so momentum-oriented that they can't accept the fact that a down opening entices new money that read about but missed Wednesday's rally."

    Also, he likes aluminum stocks, such as AL and AA.

    His reasons are:

    1. They usually have long cycles when they get it right.
    2. Energy costs for these companies have actually come down.
    3. The cycle just started!
    Rite Aid's Turn Is for Real
    06/22/2006 9:59 AM

    In this article, Cramer likes RAD and feels the stock will trade higher because its price "still reflects bankruptcy risk."

    Cramer cites the 17 billion per year revenue and 3.6% same store growth and declares Rite Aid is a "takeover target."

    Plus, he is adamant the stock can go up without takeover speculation.

    Bottom line: Cramer thinks RAD is a cheap turn around play.

    Buy Ahead of Next Employment Report
    06/22/2006 9:44 AM

    In this article, Cramer wants his readers to buy stock, ahead of the next employment report on July 7th. He feels "those who think there has to be a second rate hike can't possibly see through two employment numbers."

    Finally, he senses the market will trade lower for the rest of the week due to "no liquidity" and "because of the ease of knocking the futures down when no one is around."

    However, he does not see the market going down too much, despite his constant warnings of margin selling and mutual and hedge fund redemption, because "Too many people need to buy the market ahead of the end of the quarter, so you may not be able to act swiftly on that day."

    NOTE: Very confusing stuff to follow.

    Comments:
    regarding Cramer's (and many other trader's) bet that strong 2Q earns will buoy things - they should perhaps focus on the fact that they are really betting on guidance and whether companies will start hedging their guidance statements in this sort of environment. I'd be much less comfortable placing bets on 2Q's forward guidance statements.
     
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