The first caller on Jim Cramer's "RealMoney" radio show wanted to know if Cramer was backing off on

Conexant

(CNXT) - Get Report

. Cramer said that he had "correctly interpreted a sentiment I felt up until today."

"I have been saying until today that we have had a persistent trend going on for about a week, where a company will report a beautiful quarter and the stock will sell off," he said, calling it the "glass half empty" phenomenon.

"Well today we switched to half full," he said.

This shift has led him to believe that Conexant may not sell off after it reports. He reminded the caller that he is not worried about the company at all, but that his concern has been the way that Wall Street has greeted good earnings reports.

He said that there has been some stagnancy in the tech sector, noting that

Qualcomm

(QCOM) - Get Report

reported a great quarter but did nothing on the news. He owns the stock for his charitable trust

Action Alerts PLUS.

He told a caller that in this environment, he would wait for a pullback before buying

Akamai

(AKAM) - Get Report

. The stock has not fallen, he said, which is why he would wait a little before getting in.

The company will likely see some profit taking, he said. He would wait for the stock to come down to $31 and put half his position on, and then buy the rest after it fell to $30 or below. The stock was trading above $33.

As for

Telmex

(TMX)

, Cramer said that he does not bless buying shares of the largest phone company in Mexico. Even though the stock has a 3% yield, he said that the company is facing too much competition.

A caller wanted to know why

Gilead

(GILD) - Get Report

has been taking a beating. Cramer said that when companies like oil-services play

Baker Hughes

(BHI)

are seeing 89% earnings growth, a formerly hot sector like biotech will take a hit.

"There are hotter areas now

than biotech," Cramer said. He added that mutual funds, sensing this shift, are likely pulling massive amounts of money from biotechs and health care and putting it into energy and minerals.

But this will not last forever, Cramer said, adding that there is nothing wrong with the company. "Stick with Gilead ... they have a terrific HIV franchise."

He said that

Valero

(VLO) - Get Report

is falling because "President Bush is focusing on the refining industry and not in a good way."

He said that people are using Valero as a whipping boy because there is sentiment that refiners are making too much money. Plus, he said that people feel that Bush will be able to push to have new refineries built.

But Cramer said that building new refineries is not a federal issue. "It's a local issue. ... No one wants a new refinery built near them."

He said that Valero is almost done going down, and that he would buy more at this low level because it will run higher again.

Finally, he told a caller that

Palm

(PALM)

will make a comeback as its Treo takes more market share from the competition.

He put a price target of $30 on the stock, which currently trades below at about $22.75, and said to stick with it.

To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.

At the time of publication, Cramer was long Qualcomm.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

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