NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- why there's nothing wrong with mimicking the big money;
- glimmers of hope for housing; and
- why it's time to stop oil manipulation.
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
FADS CAN Is Back in Action
Posted at 1:33 p.m. EDT on Friday, May 27.They tried to keep Chipotle (CMG) down, with worries about raw costs. Fifty-week high. There have been endless negative articles about Netflix (NFLX) and how everyone is gunning for it. Just took out the 52-week high. Could there be more people saying negative things about the valuation of Salesforce.com (CRM)? I don't' think so. Fifty-two week high this week. Can you believe the power of Amazon (AMZN) after the quarter it reported? Sure, with gasoline at $4, you can. Deckers (DECK) skipped a beat, but it has rejoined the bull market show and is moving past that last quarter as a supply chain problem in Europe. That's all it was. Apple's (AAPL) finally getting jiggy, and even F5 Networks (FFIV) is showing life after fellow data-center player NetApp (NTAP) reported a stellar quarter. > > Bull or Bear? Vote in Our Poll In other words, the acronym FADS CAN is back in action, and there's nothing more bullish than having these high-octane leaders back in charge of the next move. I have been ridiculed as a momentum player by many. I have always rebelled at the characterization simply because what I am really about is realizing the leadership, understanding its valuation flaws, and then playing along with deep-in-the-money calls. It has been the right way to do it since the great bull market began in 1982, and I have made money with it continually. It is actually a more rigorous, limit-your-downside approach than any I have ever been able to come up with. There is simply nothing wrong with mimicking the big money. It is another tool in the arsenal the way price-to-book is for some or P/E/G rates are for others. It is ridiculed chiefly as a greater fool theory, but what you are really playing is the money-in phenomenon, recognizing that the highest-growth funds are good at marketing and that they get money in and put it to work without serious valuation parameters.
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