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
EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Catalyst Stocks, A Defiant Tesla: Jim Cramer's Best Blogs

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. Recently he blogged on:

  • why you need to stick with catalyst stocks that will perform right now, and
  • how Tesla has managed to defy both logic and gravity.

Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.


Stick with Catalyst Stocks

Posted at 04:06 p.m. EST on Friday, Feb. 14, 2014

We're in a performance-grab moment. That's where we are looking not for stocks that can protect us or that are good hedges against certain events or are bond-market equivalents, although those are working. We're looking for stocks that can outperform an up index.

[Read: Cramer and Link Are Buying Chevron -- Should You?]

You get these periodically when so many are caught looking the wrong way and the market switches violently and puts on large percentage-point gains. Suddenly, everyone who was defensive is forced into being offensive, so they pile into stocks that have decent stories and they use intraday weakness to buy. Without the debt ceiling debate and with a steady hand at the Fed and a definite up trend in Europe, coupled with a bottoming of the Baltic Freight Index and a disappearing of the emerging-markets panic, the bears are struggling to find something to hang their hats on.

You can't just say "it's too overbought," even as the same oscillator I follow that hit -5 not that long ago -- the level I always stopped selling at -- is now at +5 the level I stopped buying at. (That's the S&P 500's proprietary oscillator, if you want to obtain it from S&P.)

For the record, I am uncomfortable with this level of buying, but I get it and I know it can get really exaggerated.

All of these changes are manifested in the mid-morning surge, where desperate money managers put money to work lest they, once again, fall back behind the averages. You can see it happening when you look at stocks that go higher without any news flow: stocks like Tech Data (TECD) and Lockheed-Martin (LMT). You can see it when stocks fall and then start rallying the next day, like P&G (PG) or Starwood (HOT), as buyers say, "Wow, a chance to buy something while it is down." Right now, I bet there are people salivating to pick up some Under Armour (UA) the moment it settles. I wouldn't be surprised at all if VF (VFC) or PepsiCo (PEP) catch bids. They are high-quality names that are down too much already.  

[Read: Greenberg: Why Investors in Herbalife and Nu Skin Should Read This Paper]

It's tough to think like this because lots of the stocks that are down actually deserve to be down. I don't know how you glom on to a retailer knowing how February's so bad. Same with the autos, although we own General Motors (GM) for the trust. You might get hit with some negative news if we don't get better weather over the next few weeks. These lost weekends play havoc with the numbers.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management 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 extraordinary 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

Jim Cramer's protege, 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
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Our Tweets

Brokerage Partners

Top Rated Stocks Top Rated Funds Top Rated ETFs