Don't ignore the good news out of semiconductor land just because it doesn't fit the thesis of a down day. Microchip (MCHP - commentary - Cramer's Take), Fairchild (FCS - commentary - Cramer's Take) and Semtech (SMTC - commentary - Cramer's Take) can't be overlooked for telling great stories. They are too integral to the gadget rally that has taken a breather for the last couple of days.
Understand the mindset of the selloff. We have to have one. Stocks have moved up too far too fast. It can't be this good. Or, as The New York Times put it in a completely ridiculous if not entirely facetious front-page headline: "Upbeat Signs Hold Cautions for the Future."
I'm stuck with the evidence, though. Microchip is the big-screen television company. That means you can buy Corning (GLW - commentary - Cramer's Take) and Best Buy (BBY - commentary - Cramer's Take). Semtech's analog and mixed-signal business means that you should take another look at Analog Devices (ADI - commentary - Cramer's Take). Fairchild makes me feel like taking some National Semi (NSM - commentary - Cramer's Take), if it were only to come down.
P.S. Will you be there when Cramer makes his next move?
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James J. Cramer Don't Try to Dodge the Dip in Tech 11/30/2005 9:03 AM EST The risk of not getting back in to these stocks outweighs the reward of exiting for this breather.
James J. Cramer Stay in These Games 11/29/2005 4:48 PM EST Electronic Arts and GameStop will overcome the headline noise.
James J. Cramer Watching and Hoping for a Downleg 11/29/2005 4:02 PM EST Remember, we want to stair-step higher here, but month-end markups could frustrate us.
James J. 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 ActionAlertsPLUS. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest 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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