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

Cramer: The Waiting Is the Hardest Part

NEW YORK (Real Money) -- Tough moment, right now. It's a moment where, when I hit up a stock, pretty much any stock, I say to myself, "Nah, has run too much, have to wait for a pullback."

It's OK if you have one or two names that you think have moved up, where you want to wait for a pullback before you buy. But almost every stock I looked at today I thought had moved too much.

Let me tick down some. I think the oil service companies have been amazing and seem to want to go higher still. But when I look at where Schlumberger (SLB) has gone, or Halliburton (HAL) for that matter, I say, "No way, moved way too much." The charitable trust has been buying Ensco (ESV), but that's because it is hated, despised beyond all reason and has a decent yield. When I saw the stock up yesterday I figured someone has to downgrade it. Yet that's the stuff that's really left to buy.

The high-quality software-as-a-service companies have corrected from hideous levels, and I really like Concur (CNQR) and Salesforce.com (CRM). But the easy money has so clearly been made here it's palpable. We want to be bigger in Facebook (FB), but the stock had been restricted, meaning I have mentioned it on one of my shows and I wasn't allowed to buy it. The stock's now run to the point where I think it, too, has moved too high to grab some more. Old tech, meaning Oracle (ORCL) or Cisco (CSCO) or Intel (INTC) or Micron (MU), Seagate (STX) or Lam (LRCX), have all rallied way too much to pick at. The only one that hasn't is IBM (IBM) and I have to tell you that the trust's experience with IBM has been, well, let's just say suboptimal.

Same with retail. The good ones went up huge after their quarters. It is one of the reasons why we felt compelled to buy Costco (COST) on even the slightest dip. They just don't stay down, except, that is, the ones you don't really want to own like Walmart (WMT), Target (TGT) and DSW (DSW).

Group after group you see the same problem, with only the real stinkers available, whether it be the drug stores, the health maintenance companies, the the consumer packaged goods, the industrials, you name it. Have you seen the transports? New closing record for five straight days! You want to come in on top of that?

Now, I am sure you could argue it doesn't matter. If I like a stock I should just go buy it. If I think it is going higher, what's the point of waiting? I can tell you that if you approach stocks like that and we actually get the pullback, you are more likely to sell than buy. Or you can try to average down, but it's one of the toughest things to do. Believe me when -- not if, but when -- the pullback occurs, it will be because of something that will make it seem dicey to buy because it won't have come down enough or will end up coming back to these levels after a couple more days' advance. Which is what makes this moment difficult. Of course, it can be solved by a couple of down days. But if we don't get them, then I think we are in pass mode for many of the companies we would really like to own until the come-down and the chances of a mishap are distinctly smaller.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long COST, ESV and FB.

Editor's Note: This article was originally published at 6:21 a.m. EST on Real Money on May 30.

>>Read More: Is Google Crazy to Sell a Desktop Computer for $350?

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