Jim Cramer
The question is, can you handle the integrated hits, even if later on they produce a longer-term advance as we continue to run out of oil and the oil in the ground is worth a great deal?
My judgment is that such a decline will be too hard for most, and it is worth it to trim this group hard, which is something I have been reluctant to do. I have been using an ultimate $150 target because I believe that translates to massive investment in alternatives. But the spike, intraday, to $138 is pretty darned close to $150, and I don't want to overstay my welcome. At the time of publication, Cramer had no positions in the stocks mentioned.Playing the Topsy-Turvy Trading Game
Originally published on Thursday, May 29, at 1:38 p.m. Here's an investment strategy for you: Take whatever was down yesterday and buy it today. Fund it with sales of yesterday's winners. Goldman (GS Quote - Cramer on GS - Stock Picks) gets clocked yesterday? Pay up 4! Banks awful? Get down there and scoop up Citigroup (C Quote - Cramer on C - Stock Picks) and JPMorgan (JPM Quote - Cramer on JPM - Stock Picks). (Please run, don't walk, to Doug Kass' unbelievably variant view of warming up to the financials. He was dead right on the way down; his change is blaring in my head and should to you, too.) Costco's (COST Quote - Cramer on COST - Stock Picks) been strong; great quarter? Sell. MasterCard's (MA Quote - Cramer on MA - Stock Picks) been doggy; great quarter? Take it up 20 and change. Or how about National Oilwell Varco (NOV Quote - Cramer on NOV - Stock Picks)? This one's been on a tear because of a belief that oil inventories would be down big. They were, but we are getting big selling anyway. Nothing acted worse than Procter (PG Quote - Cramer on PG - Stock Picks) lately, except Pepsi (PEP Quote - Cramer on PEP - Stock Picks). You could have made fortunes shorting these non-takeover-able stocks. Not today: You'd be creamed. I was pulling what was left of my hair out buying Altria (MO Quote - Cramer on MO - Stock Picks) yesterday and was nearly sick at the relentless decline despite what I think is the likelihood of an SAB transaction, which Altria partially owns. Today it reacts even as Anheuser-Busch (BUD Quote - Cramer on BUD - Stock Picks) signals a deal. And then there is the biggest conundrum. You couldn't touch the drug stocks yesterday; today, Abbott (ABT Quote - Cramer on ABT - Stock Picks) -- a stock I own for Action Alerts PLUS -- is soaring. Of course, this is simply a deadly moment for anyone trying to outperform on a short-term basis. No one's that good. You give up exactly what you "made" yesterday and can't make it back today because of the cosmic shift. So, what do you do? I like to prepare for the change by buying stocks getting hammered today. I am bidding for Freeport-McMoRan (FCX Quote - Cramer on FCX - Stock Picks). I want to sell, small, the stocks I have been buying down that are now turning, although I think more outperformance beckons. The trick is to simply be where they ain't with buy orders, and be where they are with sell orders. Frontsies/backsies on a daily basis. Counterintuitive, but dead right. Random musings: Congrats to the New York Stock Exchange (NYX Quote - Cramer on NYX - Stock Picks) for going into commodities. I still like gold! At the time of publication, Cramer was long Abbott, Freeport, Goldman and Altria. |
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