Tech Floats Up in Canal-Like Pattern

Help! I am in a time warp!

The vast majority of the stocks that are up huge today are total throwbacks to the days when we were just getting more sophisticated, souped-up personal computers and servers -- Teradata (TDC - commentary - Trade Now), Western Digital (WDC - commentary - Trade Now), National Semiconductor (NSM - commentary - Trade Now), Xilinx (XLNX - commentary - Trade Now), Analog Devices (ADI - commentary - Trade Now), Intel (INTC - commentary - Trade Now), Jabil Circuit (JBL - commentary - Trade Now), Linear Technology (LLTC - commentary - Trade Now). Where are Data General and Digital Equipment when we need them?

Yesterday I was watching some talking head lament that tech's finished, that it's been rolling over, that it has nowhere to go but down and that because of the rollover of this leadership, the market's due for the big pullback. And then we get today. What would she have us do now?

It was like a mirror-image of a talking head I heard on Monday saying that now that bank stocks have been rolling over and have lost their leadership, the market's had it. Of course, the next day the banks ran? What were we supposed to do after that rally?

We are in a roving rotation that feels a lot like a canal. If you have never seen one, there's one near my old country house; they are pretty neat. A boat sits in a little pen, or a lock, and water floods it up and it moves on. Then another boat goes into the pen and gets lifted up. On Tuesday the canal floated up the banks. Today it's floating up the techs.

What's that I see down the river? Looking like the oils about to step up after some so-called unexpected increase in stock piles. Getting ready to float the energy boat?

That's been the pattern. I wouldn't bet against it.

Random musings: Should Electronic Arts (ERTS - commentary - Trade Now) be bought by someone? Yes. It has squandered its franchise and become a sad also-ran. Should you buy it? I think the numbers are too high, so I would be wrong in telling you to do so.... Xoma (XOMA - commentary - Trade Now) is developing a flu antibody. Oh geez, will this game ever end...? The mystery of Frontier Financial (FTBK - commentary - Trade Now), one of the largest volume traders out there, seems to thicken.

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At the time of publication, Cramer had no positions in the stocks mentioned.

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