Sticking With Old Tech

Drug stocks are highly sensitive to dips in the bonds and the NAPM report. The trader prefers old tech.
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Nasty reversal in these drug stocks. I saw

Bristol-Myers

(BMY) - Get Report

being taken at $73.5 earlier today and was kicking myself that I wasn't long the darn thing.

Now it looks like the people who paid $73.5 are doing the kicking! As I said this morning in my rundown, I am sticking with old tech. One reason I am doing so is that it's a lot easier not having to worry about the bonds when you are trading tech than when you are trading the drugs. The strong BMY trades, which now have to be regarded as head fakes, came when the bonds were rallying. As soon as the bonds tanked, BMY did, too.

Tech,

DOT

-tech excluded, doesn't have as close a correlation so you can breathe slightly easier when the bond futures reverse. A surprise too-strong

NAPM

number clocked the drugs, but not tech. In the meantime, the

Red Hot

index breaks out into the positive. Again, I think that has to do with the pack mentality of the mutual funds more than anything having to do with the bonds.

And

Nortel

(NT)

continues to be "volatile," brokerspeak for "it keeps going down!"

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund was long Nortel. 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.