Repositioning Time

Cramer's using strength to exit some of the wilting dot-coms and get into their ailing tech suppliers.
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Intel

(INTC) - Get Report

rides again. It's the bulls' best hope.

Me, I bought bonds this morning. I think bonds got to where they had to go faster than stocks did. I am playing the snapback rally with Intel and other semis, trying not to stray too far. Although I did just buy some

Bristol-Myers

(BMY) - Get Report

.

I like bonds more than stocks. And the stocks I like are strictly old tech ones that have gotten a boost from Internet dot-coms spending their underwriting dollars.

Look, we are way oversold, and with the bonds firming (my buy price was 87 20/32 with

BankAmerica

, in case you doubt me), we can expect to rally a little from here as some people begin to believe that the tightening got priced in.

I am using strength to reposition myself out of some of the wilting dot-coms and into the companies that got clocked last week that supply tech to the Net, which is where many of these dot-com dollars go (

Hewlett-Packard

(HWP)

,

Cisco

(CSCO) - Get Report

,

Broadcom

(BRCM)

). In the interim, I'm going to put a small position on in

DOT

puts.

And I am raising net cash at the end of the day, as I have to get out of the stuff we bought on the dip on Thursday and Friday.

We are in a weird predicament: We're slowing down, but the prices are still moving up. That's not a sweet spot. It is a place where the

Fed

can jawbone or tighten.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Bristol-Myers, Broadcom, Cisco, Hewlett-Packard and Intel and short the TheStreet.com Internet Sector index. 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.

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