RealMoney Radio Recap: Tech Release

As people stay involved in tech stocks, they are losing money and ignoring basic American companies that could be making them money, Jim Cramer said on his "RealMoney" radio show Thursday.

Wednesday's rally, which seems like it was a one-day deal, is the perfect example of why you should sell strength, he said. Today's market started off really strong, but investors wanted to cash in, so institutions came in and sold.

Companies that are involved in the industrial space are doing fine, but the tech sector is worse than Cramer said he has ever seen it.

Qualcomm (QCOM Quote), which Cramer owns for his charitable trust, Action Alerts PLUS, since it didn't offer a very bright outlook, is getting killed.

Intel's (INTC Quote) had a decline in sales and profit for the second quarter because of its price war with Advanced Micro Devices (AMD Quote).

The news of Intel and Qualcomm is similar to other tech companies, Cramer said. "It is just plain bad," he said.

Microsoft (MSFT Quote) and Cisco (CSCO Quote) are down too, he said.

People waited way too long and overloaded their portfolios with tech, Cramer said. Now they are losing money. PC companies, hardware/software or telco equipment businesses are in major bear-market modes right now, he said.

Consequently, as people stay long and involved in these stocks, the basic American companies such as Kellogg (K Quote), Boeing (BA Quote) and Johnson & Johnson (JNJ Quote) are being ignored.

People are too busy wondering when Dell (DELL Quote) is going to bottom, Cramer said. But what they really need to do is move on, he said.

Holding on to PCs, hardware/software or telco equipment businesses right now, is not a good move, he said. If you have too many tech stocks, let them go and just keep one and diversify yourself, he recommended.