Jim Cramer fills his blog on
every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- the beauty of tech,
- looking for levels to buy, and
- real bank reform.
for information on
, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
Not a Bearish Tech Story in Sight
Posted at 4:05 p.m. EST, Jan. 19, 2009
For two weeks we have watched the techs in the Nasdaq roll over with pain, no pleasure. The leaders of the rollover? Not just
, but stocks like
. They were, I believe, marked up severely at year end by joyous managers trying to catch up with the Nasdaq benchmark-plus-40% performance.
We've been in a Nasdaq hangover.
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Apple's really something, as all day I have searched for
proprietary for why it is rallying. Nothing. Nothing at all. Sure, the Tablet sounds cool, and some are saying that the Tablet is so amazing you have to buy it ahead of the launch. Also, the iPhone's on fire. I hear good things about Mac sales. But mostly it's the selling of the stock that has at last abated. With a vengeance.
Google? Reports this week. You know, I think it will be amazing. Amazon? Way oversold by now, with a terrific
online multiyear growth story.
But it is SanDisk that intrigues the most. This one's been drifting down ever so slightly as if nothing good is happening with this flash storage company, despite tremendous sales in its end markets. I think a lot more company stocks take their cue from SNDK than people realize, including Intel, which seemed to "confirm" the SanDisk trend when it reported.
Today, that sagging market's ending. Of course, there will be those who say that this is all about Scott Brown. But I have to tell you, I would be buying these international companies with Brown or Coakley.
Tech's gotten a little irrational, as a company like Sandisk or
could blow out next quarter, but people have stopped caring. I think once Apple went nuts to the upside, it took a lot of the SanDisk-like companies up with it. I think it is day one of a rally that will continue in this group if Brown wins, but should win either way. I bet other analysts will upgrade tech stocks courtesy this Apple/SanDisk move, not to mention how much
rallied off that
Enough already. There's no bear story that can be generated that I can find on the horizon.
(And I don't think that IBM's just-reported number hurts the cause at all!)
At the time of publication, Cramer was long AAPL and INTC.
Not Finding Much to Buy Here
Posted at 2:38 p.m. EST, Jan. 20, 2009
Boy, they don't give you all that much to buy, do they? Looking over my screen, all I see are stocks that have given up a fraction of the gains made over the last few weeks, and it's not enough to tempt me in most situations.
Sure, I am tempted to look at some of the oil plays, but the pattern has been oil going from $80 to $70, and who is to say that pattern won't be repeated again? Do you want to buy
ahead of the quarter, not knowing what they have to say? Do you want to buy any one of the oil service stocks now if SLB says that spending's not increasing?
intriguing, but again, the commodity's got to see that $70 bottom. I like the natural gas stocks and there was what I regard as a positive hearing on the Hill today about drilling but, again, the commodity is in free fall. Why not wait until we see where it bottoms?
I am tempted to buy
Doug's comments, but it's barely down.
? That's got too much pump in it if the dollar keeps going up, and I like that stock very much.
The retailers haven't given up enough, even though I question why they should go down at all. Banks? You know what? They are probably the most intriguing stocks out there because they are bucking the trend of the market.
Yet I like to buy stocks down on down days, not higher.
? It's given back only half of yesterday's gain.
? Not ahead of the quarter in this tape.
Just tons of objections and prices that are too high.
Not yet ... I am willing to miss it if we get no more weakness.
At the time of publication, Cramer was long Apple, Chevron and Procter & Gamble.
We Need Real, Not Punitive, Bank Reform
Posted at 6:26 p.m. EST, Jan. 11, 2009
Sure, I'm upset. I am upset because I am sitting here on every single bank conference call, and everyone says the same: We may have had peak loan losses. We are finally, a year after Armageddon, getting the banking system on its feet. Meanwhile, in the House of Representatives is a terrific piece of legislation, stalled because of health-care reform, that would bring all of the hidden derivatives that wrecked so many banks and all of the bad investments that were hidden from us into plain sight, traded on exchanges and reported quarterly. Plus, regulators would have the power to shut down abusive banks early, before any hint of possible failure.
That piece of legislation, sponsored by Barney Frank, the most sophisticated student of banking woes we have, and shepherded by Treasury Secretary Tim Geithner and Fed Chairman Ben Bernanke, has now, for all intents and purposes, been scuttled by something punitive and amorphous and difficult to understand, by an angry, intemperate president. Yes, Paul Volcker likes it. Yes, he is a hard-medicine guy. Yes, he has credibility.
But, only someone who simply hasn't done his homework on the banks and is out of touch with the industry would ever endorse this new plan, which was so hastily put together that even Frank, who has worked hard to put together the best piece of banking reform possible, seemed surprised.
I am aghast. First, we know that if unemployment goes higher,
Bank of America
and a host of the now beloved regionals might have to issue more equity. Are you going to buy with this monstrosity hanging over the banks' heads? Second, I don't know if Lehman would have been caught by the president's proposal, but
and GMAC and Washington Mutual and Wachovia wouldn't have. Third, it was the unregulated mortgage problem and the mortgages Lehman was forced to buy, regurgitated by their overexposed clients, that brought that firm down. AIG was chicanery. Fannie and Freddie were crushed by greedy executives who tried to juice earnings by keeping big mortgage portfolios inhouse, something that this proposal would do nothing to avert.
internal hedge fund hasn't cost the taxpayer anything.
, which mixes both, is the most admired bank in the world because it was there when the government needed it to buy the unregulated nonsense that wouldn't have been caught by this.
Frankly, the whole idea is a total embarrassment.
I know that Volcker and England's Mervyn King have been pushing for this change. I know that I opposed the repeal of Glass-Steagall because I feared deposits would be used for unregulated purposes. But that wasn't Lehman's problem, or Bear's. They weren't deposit institutions. JP Morgan was grandfathered in before this, but it didn't have problems either.
It is only because of the empirical nature of the damage that I have to conclude President Obama was grandstanding after the Democrats lost Ted Kennedy's Senate seat. He couldn't talk about jobs. So he talked about something that's just pure class warfare.
It's just a depressing day, and a reminder that this market has many champions among the great companies that are delivering terrific earnings, but many of those companies have a real enemy in the White House. But then again, if you work for the government, you might never know the difference.
At the time of publication, Cramer was long BAC, GS and JPM.
Jim Cramer, co-founder and chairman of TheStreet.com, writes daily market commentary for TheStreet.com's RealMoney and runs the charitable trust portfolio,
. He also participates in video segments on TheStreet.com TV and serves as host of CNBC's "Mad Money" television program.
Mr. Cramer graduated magna cum laude from Harvard College, where he was president of The Harvard Crimson. He worked as a journalist at the Tallahassee Democrat and the Los Angeles Herald Examiner, covering everything from sports to homicide before moving to New York to help start American Lawyer magazine. After a three-year stint, Mr. Cramer entered Harvard Law School and received his J.D. in 1984. Instead of practicing law, however, he joined Goldman Sachs, where he worked in sales and trading. In 1987, he left Goldman to start his own hedge fund. While he worked at his fund, Mr. Cramer helped start Smart Money for Dow Jones and then, in 1996, he co-founded TheStreet.com, of which he is chairman and where he has served as a columnist and contributor since. In 2000, Mr. Cramer retired from active money management to embrace media full time, including radio and television.
Mr. Cramer is the author of "
," "You Got Screwed," "Jim Cramer's Real Money," "Jim Cramer's Mad Money," "Jim Cramer's Stay Mad for Life" and, most recently, "Jim Cramer's Getting Back to Even." He has written for Time magazine and New York magazine and has been featured on CBS' 60 Minutes, NBC's Nightly News with Brian Williams, Meet the Press, Today, The Tonight Show, Late Night and MSNBC's Morning Joe.