You chartists out there, what do you make of this
chart? Looks to me like if get a blast upward here we could go from sow's ear to silk purse.
Rise and Shine
I don't spend much time looking at charts as a determination of what to do, but each Monday I take my
chart book and go through everyone, looking for things I have missed. I also plot some of the more important indices including the DOT.
I am shocked at the resilience of this DOT. How many times have we dumped that thing? How many times have we written it off? But then it bounces right back when the earnings are about to be announced, in part because the best Nets report early and people don't want to be short ahead of the good'uns.
Funny, I didn't expect the DOT to have this much strength. There aren't many people who want to window dress with the Net. In fact, the Net looks a little like a naked mannequin when compared to the
or the networkers. I thought people would want to show they were Net-free, except for the beloved infrastructure plays (which are an inferno today).
Now I am thinking that if it takes out 600 we will be back where we could get a gallop in the best ones. We have been helped by an ever-so-discernable decline in the number of IPOs, plus a floor in the second-tier names that at this point seems made of tunsgten. The combination is igniting all the old faves and, after the torture I have been through to keep these names on the sheets, I am not bolting now.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at