We are all technicians now. What, after all, is a Red Hot stock, if nothing but a stock with a good-looking chart?
Join the discussion on
Cramer's Latest, go to the
Red Hots Forum
, or visit our
. It is no coincidence that the B2B winners will fare well in
Gary B. Smith's
chartbook; we found these stocks by examining the stocks that were rising every day.
readers are blessed with two of the finest technicians on the planet:
Helene Meisler and
Gary B. Smith. The latter, today, has an unbelievably insightful
column on the important of technical analysis that is a must-read for anyone playing in these incredibly hot stocks.
How ironic that Gary's column appeared right at the time when I was trying to develop a matrix for us to figure out what is working and what isn't -- because Gary is right. His method is working. It has to be considered part of the arsenal here, if not a big gun.
Here's why: The individual is calling the shots, and the individual's favorite weapon is the chart. We know from the brokerage roles that individuals are dominating the trading in this market. The individuals don't know an F5 from an
. But the chart levels the playing field as mightily as the research can. People are buying what looks hot because it has been self-fulfilling.
I still think earnings matter. Not as much as revenues, though. And while it was a stretch for me to say that right now people who invest in good business models are making a ton of money, I am unwilling to trash the earnings/interest-rate relationship as quickly as Gary would like.
But as long as the individual calls the shots, Gary's analysis will have more power than any model that pins itself on earnings.
Lots of good stuff around the site. You just have to know where to look at it.
weighs in with an excellent piece about what a bad deal looks like. Judging from his excellent column, we are done with the big deals for this century. ...
I clashed about train schedules this weekend, so if you are one of those who only looks at us Monday through Friday, you are missing some great stuff. ... Our
chat boards make you money again. If you participated in our
Dave & Buster's
forum a few months ago, you would have stayed away from the stock, even though the insiders were buying hand over fist. You avoided a 60% decline by just checking in and seeing what others were saying, which was not too inspiring. I know that discussion talked me out of buying. ... My hat is off to
, one of our more dedicated readers, who sought to engage me in a
discussion over the weekend. ... Speaking of weekends, anybody notice how good
is becoming on Saturdays and Sundays? Bravo to JNJ,
, for working hard to make it fantastic.
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. Cramer's fund may be long or short certain stocks in his B2B rotisserie league or Red Hot index. 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