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

That's why my take is to do very little, except to continue selling the consumer-products-company stocks that were starting to roll over, and to be very careful of the parabolic moves that are all over the place. Those stocks are just too hard to buy. They are all better sales, for the most part, until they get to lower levels.

Now, I am not joining the negativists who think this is the real deal downturn that will wipe out everything. For the most part, those are people who missed the last 4,000 points in the Dow, or at least the last 2,000.

However, I see no rush to buy anything unless it has a higher yield -- perhaps a clobbered master limited partnership or real estate investment trust. Health Care REIT (HCN), American Realty Capital Properties (ACRP) or Enterprise Products Partners (EPD) come to mind.

For the others, I would prefer to wait until they help the cost basis. For myself and Stephanie Link, co-portfolio manager at Action Alerts PLUS, that means a decent pullback.

If, instead, the market hangs up here and doesn't go down, I would like to take more profits vs. money I put to work. Remember, this is for Action Alerts PLUS, where we have kept pace with the market. That gives us a slightly clearer head than those who need this market to be much lower in order to save their numbers for the quarter.

All in all, a cautious approach is warranted. Not extreme caution, but certainly no enthusiasm. I didn't like the last 1% to 2%, so I can't suddenly like it now. We were trimming a lot of the big gainers last week, and that looks right.

Putting the money back in a hurry will look wrong until more is known and more erosion talks place.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long BMY.

Check Out Our Best Services for Investors

Action Alerts PLUS

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
Quant Ratings

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
Stocks Under $10

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
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

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
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs