The Nasdaq's finally taking a well-deserved breather. You can always tell it is a breather because, frankly, there was no reason for it. In fact, people were trying to claim that some negative comments about Baidu
(BIDU)
triggered it all.
To me there is a deeper, more meaningful reason: rationality!
That's right, when I came in this morning I said, "Here we go again, with the Apple
(AAPL)
up huge, the RIMM
(RIMM)
up huge, the Amazon
(AMZN)
up huge," just buy, buy, buy. Isn't anyone ever going to take profits?
The answer is yes, today, when you least expected it.
The fact that we were able to reverse so quickly shows that there are some people who want to take some profits now that so many valuations have gotten ahead of themselves without any new information.
Let's take Apple, which I like. Every day some analyst comes in and raises the price tag with basically the name earnings numbers on it. And every day it goes higher. At a certain point, that game gets a little nutty.
Today was that point.
I believe that now that we have seen some vulnerability to the market, you have to be careful. We suddenly have crossed over into a world where we will not view things in tech as rosily as we did, say, Monsanto
(MON)
or Valero
(VLO)
.
Be prepared for some tech news to be interpreted negatively and you get a further selloff.
Hold off here.
Don't buy. Don't buy.
At the time of publication, Cramer had no positions in any of the stocks mentioned in this post.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.
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