Retail keeps drawing me on price and then turning me off on earnings and macro concerns. I wanted to buy some Target (TGT) - Get Report yesterday after reading an article in the Minneapolis Tribune that the non-Target divisions could be jettisoned. But then I thought, what happens if the GDP number comes out too high and the Fed can tighten a half-point? Hmmm, good call.
Then I wanted to increase my
position, but the conference call was just OK and I ended up trimming some. I got drawn to
under 55 after that great quarter, but then I figured, how can you buy a company that requires discretionary spending to increase when the Fed wants it to decrease?
And everybody and his brother wanted me to buy
on those quarters just reported, but sellers came out of the woodwork to hit bids on both stocks.
I would love to be a contrarian and stick big bids down for these stocks, but not with the economy this strong. These stocks
work in this scenario.
So I am trimming Gap some more and waiting until the coast is clearer. Owning these stocks is just too hard right now.
Don't forget to
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James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Gap. 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