Intel Upgrades Make Hot Market Hotter

Cramer says the upgrades should ignite the sector and postpone any profit-taking efforts.
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So it's smokin' outside and smokin' inside. Right off the bat.

Merrill

and

Pru

upgrade

Intel

(INTC) - Get Report

, a couple of positive moves that we think will take the stock right to 70.

One upgrade might have done the trick. But two upgrades ignite the whole sector, and those who thought that last week's move would lead to profit-taking look like they'll be wrong. (When I came in a zillion hours ago, the futures were off badly and the chatter overseas was back to reality.)

Coming right before earnings season and after when companies know how they did, these upgrades have a ring of "quarter finished great" and will have a double impact, since shorts drove Intel down in the last hours of pre-Independence Day trading.

And here I was hoping that the profit-taking plus all of the bad-mouthing of

Yahoo!'s

(YHOO)

Geocities

acquisition would let me back into a couple of good names ahead of earnings season. (Yahoo! kicks it off tomorrow, and I am betting it will be good.)

Don't forget the importance of the mail factor: Mutual funds will be deluged with cash, particularly the smaller-cap funds, and these funds never met a dollar that they didn't put to work the moment they got it.

Random musings:

Where are we online? How far along is the revolution? Went online this weekend hoping to find the best fireworks in Bucks or Hunterdon Counties (Pennsylvania and New Jersey) and not a single cyberpaper accepted a query about fireworks, let alone which ones would be the best. In fact, other than the online version of

The Washington Post

, which truly is making strides in its bid to be a serious portal, most cyberpapers took the weekend off. You know that one day you will be able to place that query and get a solid answer to the question.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Intel and Yahoo!. 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

jjcletters@thestreet.com.