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

Traders Flip Their Momentum Holdings

This article originally appeared Jan. 27, 2014, on Real Money. To read more content like this, + see inside Jim Cramer's multi-million dollar portfolio for FREE -- Click Here NOW.

You do not get an up opening as we just had without people coming out of the woodwork to sell, especially when there are so many rumors about weakness in the social and mobile world -- namely Facebook (FB - Get Report), Twitter (TWTR - Get Report) and Google (GOOG - Get Report).

I find this raid-like scenario typical of what happens when people feel we are safe after a very big decline. Lots of damage was done to various charts, and there was lots of rumor-mongering today, and, of course, lots of panic selling, because the up opening was as unsustainable as any I can recall.

Let me go further. The high-multiple highfliers turn out to be far more vulnerable than their growth devotees thought, and they more likely have to give up their gains for the year before they find even footing. Please remember that the Nasdaq has had a tremendous run, and the selloff is reasonable and will remain reasonable as long as the momentum speculators are scared and running.

It is never too late to sell a high-multiple stock if you are only in it for momentum.

Must Read: Jim Cramer: I'm Sure the President Means Well

It's a little silly if you were in it for something fundamental.

Anyway, it's way too early to call a bottom on the stuff that didn't come down last week. The values are in the stocks that are bond-market equivalents and softer goods that have reported good numbers.

The rest are just fodder for the nervous speculators out there. 

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long GOOG.

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 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs