Repo Man Says Sell Financials for Tech

Reposition, reposition and reposition. Did I mention to reposition?

These financials can't rally for more than a couple of days. They are so wrong short-term that they are plainly awful. I would rather own a homebuilder!

The place to buy here is tech. The techs are rolling over, and I think that this is one of those places where you can buy right now on the pullback. It's the logical place because the strength in earnings is actually preceding the ramp.

I want to emphasize to you that stocks like Hewlett-Packard (HPQ - commentary - Cramer's Take) and Dell (DELL - commentary - Cramer's Take) are simply inexpensive. Texas Instruments (TXN - commentary - Cramer's Take) lives at $35 with that buyback. There's a shortage in flash, which is great for SanDisk (SNDK - commentary - Cramer's Take). Nvidia's (NVDA - commentary - Cramer's Take) ramping.

That's where to be.

Random musings: Verizon (VZ - commentary - Cramer's Take) should never have been down Monday. Finally, everything is going right, including wireline, and the stock was down! What's with this market? Verizon remains a good buy. ... Under Armour (UA - commentary - Cramer's Take), I believe, will be up again tomorrow as it becomes another ridiculous short squeeze like Amazon (AMZN - commentary - Cramer's Take). How can 10 million out of 27 million shares be short of the next Nike (NKE - commentary - Cramer's Take)? What the heck is that? ... Did NovaStar (NFI - commentary - Cramer's Take) really think it could fool anyone with that split? ... Watch the lead for Johnson Controls (JCI - commentary - Cramer's Take), that one is back to being anointed. ... A breather for aerospace here makes little sense to me. ... With chemicals getting stronger again, Nova Chemicals (NCX - commentary - Cramer's Take) is by far the cheapest. I would scoop up some calls.

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Please note that due to factors including low market capitalization and/or insufficient public float, we consider NovaStar Financial to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.

At the time of publication, Cramer was long Hewlett-Packard and Nike.

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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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