Cisco Sounds the All-Clear for Tech

Oh doctor, I am out of bearish spin. Have to switch to "short-term cautious, long-term bullish." Have you ever noticed when those weasels come on TV and say that stuff? "You know I don't like it here, but I do like it there."

As someone who is testing his thesis by the minute, I have to tell you that this day, with the Nasdaq out of control and the banks at last catching fire, it's easy to be hoofing to the land of a thousand bull dances.

And you know what? I haven't credited Cisco (CSCO - commentary - Trade Now) the way I should have.

Let me tell you why. At 5 a.m., the Nasdaq futures were down, down about 5. I was thinking, heck, they are totally ignoring John Chambers and his newfound bullishness. They don't care.

That turned out to be dead wrong. As the day progressed, his comments got common credence. Now I have a bold prediction: I think that given the rally in Qualcomm (QCOM - commentary - Trade Now) and Cisco, I believe the rolling bull market in tech will not turn to the SOX and its components that are still on their butt, courtesy of a downgrade by Morgan Stanley that I think was dead wrong.

We are in the seasonably strongest moment for tech, and there's no way you can leave this group now that we have heard Chambers say things are getting better. Like him or hate him, he is still the most important CEO in tech, and his bullishness, initially ignored, was embraced and embraced to the point that I now believe that we will see a vicious rally in the chips, and that it begins tomorrow.

Random musings: The banks should have gone up more on the housing credit because it cleans up the "shadow" inventory that we were supposed to fear so much from that Amherst outfit. Remember them?

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

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