Get Ready for a Tech Buying Frenzy

If Microsoft (MSFT - commentary - Trade Now) has momentum and if Oracle (ORCL - commentary - Trade Now) beat quarterly estimates and if Apple (AAPL - commentary - Trade Now) has some terrific momentum and if Texas Instruments (TXN - commentary - Trade Now) and Intel (INTC - commentary - Trade Now) say things are better and if Qualcomm (QCOM - commentary - Trade Now) preannounced stronger quarters and if mobile Internet is hogging bandwidth and causing component companies to up production ... if all of this is true, then why shouldn't tech rally? (I picked at some VMware (VMW - commentary - Trade Now) yesterday for Action Alerts PLUS because of what I figured was the end of the takeover speculation.)

The troika of oil, finance and tech that has led the quarter should reignite here given the Oracle news, the completion of bank equity raises (I like the USB piece yesterday about the stability of that firm) and some stability at high prices for oil. Don't forget that the nation is gripped by a heat wave, so I expect a natural gas drawdown at last. Plus we have very good news on the health care front. Think about it: Obama could not have been tougher yesterday and yet the group did not come down. To me that's the signal to go buy WellPoint (WLP - commentary - Trade Now) (very small exposure to Medicare Advantage, the program Obama's against), Boston Scientific (BSX - commentary - Trade Now), St. Jude (STJ - commentary - Trade Now) and now Quest Diagnostics (DGX - commentary - Trade Now).

I think it is at last close enough to the end of the quarter and close enough to the holiday to make things work after the Fed news or lack thereof. It would not surprise me if there is some gun-jumping today, though, to get ahead of the Fed's release, as there has been pretty much every time since they decided to go loose and back an expansion at all costs.

Random musings: We saw some huge banking stimulus by the European Central Bank -- 442 billion euros -- after they said that there wouldn't be more stimulus. They are stimulating like mad and just not saying it. ... Mortgage applications bounce back with lower rates this week. Amazing how sensitive they are. Remember -- housing bottom does not mean house price appreciation. We confuse the stock market with the housing market. When stocks bottom like they did in March, they shoot up. Houses don't have that kind of price action. When they bottom, they stabilize and a lot of trading occurs. They don't go up until all inventory is burned off, and that hasn't happened. Remember though, the banks can now keep on the books a lot of other real estate owned, and that takes the pressure off the market.

At the time of publication, Cramer was long Qualcomm and VMware.

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