Lenny Dykstra
The carnage ended on Wall Street today, and last week's crash fear has been replaced with buy-the-dip chatter. The big fear is that investors will now load up on stocks, only to fall right back again.
The good news is that we have something to work with. Last Friday's low in the S&P 500 at 1458 gives us a level to watch and to trade from. Technical analyst and RealMoney contributor Richard Suttmeier has suggested: "If the correction is really over, we will successfully retest Friday's low and then power higher." In fact, we don't have to go back very far into history to understand this line of thinking: Just look at the textbook low retest last March. Like all market tops, market bottoms also are formed over a series of days. So I feel even more comfortable with today's pick, which happens to be the No. 1 company in the world: Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks). It is almost unbelievable how this company continues to dominate -- yes, it does dominate. When a company of this size -- $51 billion in revenue -- can continue to post solid growth numbers, the thought is simply amazing. Further, it has about $21 billion in cash, with over $11 billion in free cash flow. Yes, that is exactly what it means: After it pays its bills, pays its employees, pays everybody -- it still has over $11 billion left over to put in the bank!
RSS
