This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Hang Back for This One

Second, we've seen tremendous moves in the regional banks and insurers and other financials largely unconnected to Cyprus. I am talking about companies like CME Group (CME), or IntercontinentalExchange (ICE), or Chubb (CB) and American Express (AXP), or Discover Financial (DFS), Torchmark (TMK), State Street (STT) and Unum (UNUM). Have you looked at names like Metlife (MET) and Allstate (ALL)? These are trading like junior growth stocks on steroids.

Then there are the oil-and-gas stocks like Southwestern (SWN) or Cabot Oil & Gas (COG) and Range Resources (RRC). These stocks have to be anticipating bids that won't come. There are dozens of them.

The transports, particularly the rails, freight-forwarders and truckers, have put on nosebleed moves.

The industrials, like Ingersoll-Rand (IR); anything similar to Rockwell (ROK), the Roper (ROP), Johnson Controls (JCO); and such names as Honeywell (HON) and Mead Westvaco (MWV), and International Paper (IP), and Boeing (BA), are acting like short squeezes. The natural-gas beneficiaries, such as WestLake (WLK) and Lyondell, are acting as if they are growing at 15% to 20% when the reality is that their raw-cost feedstocks have been in decline.

Then, last week, the not-so-hot techs, like Cree (CREE), Micron (MU), SanDisk (SNDK), Texas Instruments (TXN) and Western Digital (WDC), just exploded.

On top of all that, we saw a level of toppiness in the earlier leaders: Clorox (CLX), Kimberly Clark (KMB), General Mills (GIS), Kellogg (K), Hershey (HSY), Pepsico (PEP), McDonald's (MCD) and McCormick (MCK). (What the heck is with that last one? I liked it lower.) All of these have started rolling over.

Of course, anything housing-related has had such a run that who knows where you can step in and buy a name like Sherwin-Williams (SHW) or Whirlpool (WHR).

So it's not as easy as to say "go buy them." The "them" might be some of these incredibly overextended stocks that I just detailed.

Plus, the dividend-yield support now seems to be gone for all of them.

So what does it mean? I think the stocks you would normally run to -- those early leaders, the ones that had a second leg up after the Heinz (HNZ) bid by Berkshire-Hathaway (BRK.A) -- are vulnerable. I believe the red-hot financials could cool a bit and that the transports be rolled back, particularly because they are dependent on overseas markets coming back, and those will now take another dip.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs