This Day On The Street
Continue to site
ADVERTISEMENT
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

Mocking Discipline, Measuring Froth: Jim Cramer's Best Blogs

Plus,

Or how about the action in Cheniere Energy (LNG - Get Report) jumped up big on the Cove Point approval news. Huh? They are competitors, for heaven's sake. Cheniere should be going down, not up. That's just crazy.

How about Yahoo! (YHOO - Get Report)? The consensus about yesterday's interview with the CEO, Marissa Mayer, is that it was a terrific cheerlead, a great sign that things remain on course for the turnaround. But I heard nothing new that was substantive. No matter, the stock jumped a buck on it.

Let's not forget Facebook (FB - Get Report), which goes up every day on every single price target bump, bumps that are happening only because the stock has been going up. It's a self-fulfilling prophecy.
[Read: <a target="blank" data-add-tracking="true" href="http://www.mainstreet.com/article/moneyinvesting/taxes/expiring-tax-benefits"><em>Expiring Tax Benefits</em></a>]

Now, I am not saying that stocks shouldn't be going up on legitimate good news. There's nothing frothy about Qualcomm (QCOM) going up on a renewed and aggressive buyback. And negative news, a downgrade of Cliffs Natural Resources (CLF - Get Report) for example, did take the stock down after a nice run.

But the idea that Wall Street research can have this positive power is something that signals either a reversion to the bull markets of the 1980s and 1990s, long-lasting runs that were led by bullish Wall Street, or a sign that the market has just gotten way ahead of itself and it just plain too frothy for me.

I am thinking right now that it's the latter. Maybe, perhaps, I will be willing to flip back into 1980s and 1990s mode and just admit that caution has become a big mistake, but right now I would prefer not to add money to the stock market and instead pull back a bit and wait for a better, less frothy entry point. Somehow I think I will get that chance.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long FB.
http://www.thestreet.com/story/12036493/1/stocks-rise-as-retail-sales-fed-grab-spotlight.html

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

Markets

Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs