Despite the past few days, Jim Cramer reaffirmed his bullish stance: He says this market has "gusto," and he feels there is still plenty of room to run. He pointed out that the bears have an especially long road ahead, given his call for the Dow to move up another 1,000 points.
He still believes the drillers are the place to be, not to mention his new favorite plays, machinery stocks. Regardless, there are plenty of ways to make money in this environment, and Jim shared his knowledge with us, including a rundown of all the Dow components.
Here are some of the highlights from Jim over the past week (aggregated from
and his articles):
: On the May 21
show, Cramer began his weeklong series on the Dow components.
Cramer believes the index will reach 14,548 this year, and he sees it climbing nearly 500 points in the next three months and then another 500 in the November-December rally that he predicts will come. The Dow closed Tuesday at 13,540.
Cramer didn't pull the estimate "out of thin air," he said, but rather arrived at it after doing a bottom-up analysis of all the 30 stocks in the Dow by determining what price each stock is likely to reach by the end of the year. Here is his analysis of
, which include
: Did we really think that
wouldn't come roaring back? Are we really worried about
, with infrastructure running again (
almost at par!)?
Shouldn't we be buying
before it gets to par and piling into
, which, unlike the last time it was at this price, now has a fabulous non-housing story?
I mention all of these because people don't understand that machinery is the new tech, the new pharma. Here are his favorite
: Cramer has been on the drilling sector for some time now, and he reiterated his bullish position this past week, asking, "Can the market get enough
acts like it is 1983.
I see no signs of this abating, because the bias is that if the
has to do something, it will cut, but in the meantime the growth overseas and the need to find new oil in deeper places -- something we have been saying for a year now in these pages but is finally being listened to -- is just unabated. And driving these stocks higher all of the time." Jim's
: Jim has been focused on retail stocks for a while now and he now gets it. At first, "It made so much sense. Gasoline at $3 and change. People feeling poor. The endless 'my house is not going up in price' rap. And the maxed-out-credit story that has been around for decades."
But then "it turns out that much of the weakness we saw in mainstream retailers was weather- and calendar-related. Now we are back to a little more normal situation, and while it's not great, it isn't as bad as the stocks indicate." Cramer then gave us his
which include DKS and JCP.
: Earlier in the week of May 20, Cramer picked the top domestic companies with heavy international exposure. He believes you can win with these "rest of world" (ROW) stocks. He likes these because they are not held hostage by the Fed, with whom Cramer is fed up (pun intended).
U.S. companies are saying this is a "no growth" country so they are moving lots of operations abroad. Jim gave us his
including CAT and FWLT.
Cramer was full speed ahead last night with his latest
. He was bullish on several stocks such as
but also bearish on the likes of
At the time of publication, Altucher and/or his fund had no positions in stocks mentioned, although positions may change at any time.
James Altucher is president of Stockpickr LLC, a wholly owned subsidiary of TheStreet.com and part of its network of Web properties, and a managing partner at Formula Capital, an alternative asset management firm that runs several quantitative-based hedge funds as well as a fund of hedge funds. He is also the author of
Trade Like a Hedge Fund
Trade Like Warren Buffett
. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Altucher appreciates your feedback;
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