Smartphone Stocks Send a Clear Signal

Like Apple (AAPL - commentary - Trade Now) will be denied. Think of this stock: It just hit $133 the other day and is now reasserting its leadership because of smartphones, with Palm (PALM - commentary - Trade Now) verifying the movement. Research In Motion (RIMM - commentary - Trade Now) is quickly becoming an outlier.

Plus, that whole Intel (INTC - commentary - Trade Now) foray turned out to be much ado about press releases, and I no longer think it is relevant to the fortunes of Qualcomm (QCOM - commentary - Trade Now) and Texas Instruments (TXN - commentary - Trade Now), with both experiencing breakouts. Do not forget that Skyworks (SWKS - commentary - Trade Now), RF Micro (RFMD - commentary - Trade Now), TriQuint (TQNT - commentary - Trade Now) and CommScope (CTV - commentary - Trade Now), as all play a role in this changeover.

The Nasdaq selloff, reasonable after the run, I think will be checked. I think that the good news from Oracle (ORCL - commentary - Trade Now) and Palm will prevail, and we are in a moment where leadership in tech is back, and I would use the weakness to buy.

I would also be socking in some Bank of America (BAC - commentary - Trade Now) and Wells Fargo (WFC - commentary - Trade Now) to take advantage of some big quarters coming and the lethargy they are experiencing. They are resting; they could reignite shortly.

Random musings: I thought that BHP Billiton (BHP - commentary - Trade Now) downgrade was not that right, as I see commodities ramping on a weak dollar. ... Still waiting on someone else to embrace the housing-bottom thesis, even though KB Homes (KBH - commentary - Trade Now) fits the bill. ... Bloomberg with a story about stepping up jumbo loans: Wasn't that not supposed to happen, bears?

At the time of publication, Cramer was long BAC, QCOM and WFC.

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