Intel goes on the buy list at
surprises after the close. Looks like a good
number could throw gasoline on these tech embers.
Throughout the awful weakness in the Net stocks, the money has been pouring into the semiconductors, except
. Now we shall see what happens when Intel gets on board. Virtually all of the semiconductors are smoking but nobody really believes a semi rally until Intel participates and the Goldman recommendation should take care of that. The action could be explosive because most options players had pretty much figured on a June 55 pinning for Intel. If it can get past 56 1/2, you could see some wild buying in the name as options short-sellers sprint to bring in their shorts, rather than battle the pain.
Of course, a negative CPI means we can't expect a giant rally from the get-go. But at least we know, on a not-so-good number, what can be bought: old tech.
For many of you the question becomes: Will old tech spill into new tech and, therefore, can you start buying the Net? For me, I don't like to overthink things. Why buy a derivative, when there are so many old tech stocks down from their highs to chose from? Sure, the Net managed to stave off another margin-call whacking, but why make the game so difficult?
just does the number and they clobber it after the close. Seems like an overreaction to me. Tried to snare some in the badlands down 12 but no luck.
James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Oracle and Goldman Sachs. 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