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TheStreet.com TV Recap: Tech Exhales

TheStreet.com Staff

The rebound that took place early in the day today was "perfect" and just what Jim Cramer's been calling for, he said on TheStreet.com TV's Wall St. Confidential video Webcast Tuesday.

The market needed this opening to get rid of the last sellers, he told Aaron Task, the show's host. Texas Instruments (TXN Quote) has provided the market with an umbrella to take tech higher, said Cramer, who believes the tech rally could last another three to four days.

"These are predictable rallies," he said. "When you have a very bad options hangover that finishes right near the end of the day, and you have a big, bad event like Texas Instruments to get through, then you're going to have a several-day rally."

Meanwhile, the shorts, Cramer said, were caught leaning the wrong way on this rally on homebuilding and semiconductor stocks.

Cisco (CSCO Quote) and Apple (AAPL Quote) are the only two tech stocks Cramer said he's not going to be cynical about and recommend as buys in order to "bash the shorts."

He doesn't care about Tellabs (TLAB Quote), Nortel (NT Quote) or Alcatel (ALU Quote).

Regarding the housing market, even with Goldman Sachs' recent upgrade, "this is a group that the shorts are still fighting, aided by the media," he said. However, Cramer doesn't believe market-players can short the homebuilders anymore because "the momentum of the buyers is too great."

These stocks don't trade on their fundamentals, and he also noted the pin action in housing-related plays American Standard (ASD Quote) and Masco (MAS Quote), which have been going up every day, he said.

Moreover, Cramer believes toolmaker Black & Decker (BDK Quote) is probably a buy here because it has already preannounced.

Switching gears, Cramer told Task he disagrees with the Bear Stearns call on the oil service stocks, which basically translates that Schlumberger (SLB Quote) doesn't know what it's talking about.

While he said that he doesn't want to be long any domestic or Canadian driller, Cramer said he's focused on Schlumberger; Transocean (RIG Quote), which he owns for his charitable trust, Action Alerts PLUS; and GlobalSantaFe (GSF Quote).

In addition, he said he's still betting that Halliburton (HAL Quote), which he also owns for his charitable trust, will make a big international acquisition to save itself.

Concerning alternative energy stocks, Cramer said Hoku Scientific (HOKU Quote) is obviously a "trading vehicle" and probably a "huge short down the road."

"The president has been predictable in his attempts to try to make it seem like he's trying to do something in this industry," he said. "I think he can bamboozle enough buyers into coming in and buying these stocks, but you're going to have to flip them between 9:30 a.m. and 9:40 a.m. tomorrow."

Hoku is a "real interesting short squeeze," which could go on for some time, Cramer said.