Time to Lighten Up on Sensitive Names
This column was originally published on RealMoney on July 12 at 11:31 a.m. EDT. It's being republished as a bonus for TheStreet.com readers.
Tuesday's action was pure bear market action. I always dislike using those types of terms because they obscure the ability to buy a General Mills (GIS) or a General Dynamics (GD) or a Genzyme (GENZ) or dozens of other stocks that are acting quite well.
But yesterday sucked a lot of people in. It was a day when you thought the Nasdaq 100 Index might be putting in a bottom, and today you are getting hurt even worse and giving back much more than any reversal yesterday could offer.
The real issue here is that into strength like yesterday, you have to lighten up, not buy, unless the company has no economic sensitivity.You can buy some back today if you lightened up yesterday. But not as much as you sold. Because I am hurting so badly in some of the economically sensitive names within my
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV