Friday, July 21, 2006
Real Money Blog
Oil-Stock Shakeout
07/21/2006 2:58 PM
In this article, Cramer senses capitulation on trading desks. He cites major declines in stocks, such as EMR, CMI, ARG, and ITW.
As far as oil is concerned, Cramer explains: "I have no idea when stuff in the Oil Service HOLDRS will bounce. I only know that there are too many stocks trading too low for nothing good to happen. These are not debt-hobbled companies that are doing nothing good and have no cash on hand."
Bottom line: Cramer feels this is a "a first-class shakeout," with oil stocks trading as if the commodity was $40 p/b-- instead of where it actually is-- $74.
Buy Signs in Oil Service
07/21/2006 12:25 PM
In this article, Cramer cites his complicated option pinning theory on the OIH as being thrown off due to a strong quarter out of SLB. Also, he suggests there is a great buying opportunity in oil, in relation to the actual commodity.
Finally, he cites NBR as being "one of the most objectionable pieces of paper I have ever owned." However, he feels by holding it, barring nat gas going to $4 and oil to $50, he will eventually make "ton of money."
Bank Stocks Reflect October Anticipation
07/21/2006 11:01 AM
In this article, Cramer cites the upward move in bank stocks as "too ridiculous." He believes the stocks are suggesting "the Fed is going to cut rates in October ahead of the elections. They are saying that rates will go to 4% on the short end and 5.5% on the long end."
Cramer feels the group is safe.
NOTE: Ridiculous.
Selling Just to Buy
07/21/2006 10:47 AM
In this article, Cramer believes financial institutions are low on cash.
He exclaims: "They can't buy without selling, and because of their selling, they are saying to the market, we are going into a recession."
Furthermore, he believes the Fed is mandating investors sell stocks and go to cash. Or, Cramer believes institutions are selling stock to pile into PG and PEP.
NOTE: Cramer is heavy on the black helicopter theories today.
Watch for an Oil-Service Buyback Wave
07/21/2006 10:46 AM
In this article, Cramer cites oil service companies as being rich with cash. He feels they should be utilizing their cash to buy back stock.
He exclaims: "They just don't understand it yet. You need managements who understand that the market can send anything down to much less than it is worth. We have that happening now. A few weeks ago, Anadarko showed that with a bunch of oil companies. We know Xstrata's doing that with resource stocks."
Cramer believes the selloff in oil related stocks is suggesting the commodity is "$20-30 overvalued." He feels the market is wrong for selling energy stocks and wants the oil companies to step up and buy their stock back.
Bottom line: Cramer believes the oil service companies will announce buybacks shortly.
Ridiculous Overreaction
07/21/2006 10:36 AM
In this article, Cramer cites the market selloff as "ridiculous," even if we are heading into a recession.
He points to strength in MO, PEP and JNJ.
Moreover, Cramer believes you can buy stock early next week, for a bounce.
Buying Back to Keep Order
07/21/2006 10:29 AM
In this article, Cramer cites the miserable tape in oil, despite the commodity up 25% ytd. He suggests the market is selling PNRA and SBUX as if their growth is behind them.
He highlights PFE and K as being market safehavens.
Bottom line: Cramer declares the market disorderly and feels cash rich companies will be buying back their own stocks to stabilize price action.
Housing's Unneighborly Effects
07/21/2006 9:39 AM
In this article, Cramer exclaims: "Housing's so bad that it is infecting everything, including things it shouldn't affect. I understand the correlations. They make sense to me. Sell earthmovers, sell rock companies, sell sheetrock companies."
Bottom line: Cramer believes FO, MAS and ASD will be higher 6 months from now.
What's Troubling Industrials?
07/21/2006 9:14 AM
In this article, Cramer feels the railroads are most discouraging.
He exclaims: "These stocks, however, have been crushed. Just crushed. It's awful action. When stocks don't go up on good news, you're in trouble. It means that people are believing we're putting in a top on the group."
Options Pressure and the Indices
07/21/2006 8:59 AM
In this article, Cramer offers a long winded explanation on why he believes $135 will be support for the OIH. He bases his theory on complicated option strategies.
He explains: "I know this stuff is complicated. But when I say that an index is manipulated down because of the pinning, just imagine this process happening all over the place with every ETF that has options. Many people who are long calls and short the index need the indices down to make things work. They have the firepower and the protection so they do it."
Then Cramer mocks a detractor, saying: "Yesterday some wise-guy emailer told me I didn't know what I was talking about and how I was just making it up, that the pinning doesn't exist, that the index won't go down because of it. I laughed to myself and said, "No wonder I made so much money doing it." Nobody even understands or believes it. That's why I was always able to make money. If the secret had been out, I couldn't have! There would be too many players! Now the secret's out. Be my guest."
NOTE: It appears the simple emailer was right!
07/21/2006 2:58 PM
In this article, Cramer senses capitulation on trading desks. He cites major declines in stocks, such as EMR, CMI, ARG, and ITW.
As far as oil is concerned, Cramer explains: "I have no idea when stuff in the Oil Service HOLDRS will bounce. I only know that there are too many stocks trading too low for nothing good to happen. These are not debt-hobbled companies that are doing nothing good and have no cash on hand."
Bottom line: Cramer feels this is a "a first-class shakeout," with oil stocks trading as if the commodity was $40 p/b-- instead of where it actually is-- $74.
Buy Signs in Oil Service
07/21/2006 12:25 PM
In this article, Cramer cites his complicated option pinning theory on the OIH as being thrown off due to a strong quarter out of SLB. Also, he suggests there is a great buying opportunity in oil, in relation to the actual commodity.
Finally, he cites NBR as being "one of the most objectionable pieces of paper I have ever owned." However, he feels by holding it, barring nat gas going to $4 and oil to $50, he will eventually make "ton of money."
Bank Stocks Reflect October Anticipation
07/21/2006 11:01 AM
In this article, Cramer cites the upward move in bank stocks as "too ridiculous." He believes the stocks are suggesting "the Fed is going to cut rates in October ahead of the elections. They are saying that rates will go to 4% on the short end and 5.5% on the long end."
Cramer feels the group is safe.
NOTE: Ridiculous.
Selling Just to Buy
07/21/2006 10:47 AM
In this article, Cramer believes financial institutions are low on cash.
He exclaims: "They can't buy without selling, and because of their selling, they are saying to the market, we are going into a recession."
Furthermore, he believes the Fed is mandating investors sell stocks and go to cash. Or, Cramer believes institutions are selling stock to pile into PG and PEP.
NOTE: Cramer is heavy on the black helicopter theories today.
Watch for an Oil-Service Buyback Wave
07/21/2006 10:46 AM
In this article, Cramer cites oil service companies as being rich with cash. He feels they should be utilizing their cash to buy back stock.
He exclaims: "They just don't understand it yet. You need managements who understand that the market can send anything down to much less than it is worth. We have that happening now. A few weeks ago, Anadarko showed that with a bunch of oil companies. We know Xstrata's doing that with resource stocks."
Cramer believes the selloff in oil related stocks is suggesting the commodity is "$20-30 overvalued." He feels the market is wrong for selling energy stocks and wants the oil companies to step up and buy their stock back.
Bottom line: Cramer believes the oil service companies will announce buybacks shortly.
Ridiculous Overreaction
07/21/2006 10:36 AM
In this article, Cramer cites the market selloff as "ridiculous," even if we are heading into a recession.
He points to strength in MO, PEP and JNJ.
Moreover, Cramer believes you can buy stock early next week, for a bounce.
Buying Back to Keep Order
07/21/2006 10:29 AM
In this article, Cramer cites the miserable tape in oil, despite the commodity up 25% ytd. He suggests the market is selling PNRA and SBUX as if their growth is behind them.
He highlights PFE and K as being market safehavens.
Bottom line: Cramer declares the market disorderly and feels cash rich companies will be buying back their own stocks to stabilize price action.
Housing's Unneighborly Effects
07/21/2006 9:39 AM
In this article, Cramer exclaims: "Housing's so bad that it is infecting everything, including things it shouldn't affect. I understand the correlations. They make sense to me. Sell earthmovers, sell rock companies, sell sheetrock companies."
Bottom line: Cramer believes FO, MAS and ASD will be higher 6 months from now.
What's Troubling Industrials?
07/21/2006 9:14 AM
In this article, Cramer feels the railroads are most discouraging.
He exclaims: "These stocks, however, have been crushed. Just crushed. It's awful action. When stocks don't go up on good news, you're in trouble. It means that people are believing we're putting in a top on the group."
Options Pressure and the Indices
07/21/2006 8:59 AM
In this article, Cramer offers a long winded explanation on why he believes $135 will be support for the OIH. He bases his theory on complicated option strategies.
He explains: "I know this stuff is complicated. But when I say that an index is manipulated down because of the pinning, just imagine this process happening all over the place with every ETF that has options. Many people who are long calls and short the index need the indices down to make things work. They have the firepower and the protection so they do it."
Then Cramer mocks a detractor, saying: "Yesterday some wise-guy emailer told me I didn't know what I was talking about and how I was just making it up, that the pinning doesn't exist, that the index won't go down because of it. I laughed to myself and said, "No wonder I made so much money doing it." Nobody even understands or believes it. That's why I was always able to make money. If the secret had been out, I couldn't have! There would be too many players! Now the secret's out. Be my guest."
NOTE: It appears the simple emailer was right!
