Skip to main content

Tech Rally Won't Last

These stocks want to go up, but that energy isn't sustainable. If it's not fiber or phones, it's a trade.
  • Author:
  • Publish date:

Editor's Note: This is a bonus story from Jim Cramer, whose commentary usually appears only on RealMoney. It originally was published on April 27 at 1:14 p.m. EDT. We're offering it today to readers. To read Cramer's commentary regularly, please click here for information about a free trial to RealMoney.

Tech wants to go higher here.


(INTC) - Get Free Report

putting on a great face at the analyst meeting so it isn't hurting us. People think that


(MSFT) - Get Free Report

can deliver a good quarter. We have the





(QCOM) - Get Free Report

complex at last getting off the dime. The

MRV Communications


report is helping the group (don't forget,


(CNXT) - Get Free Report

is on tap after the close and I think it will be good). Plus, we had a rare good article about fiber in

The Wall Street Journal

, which should be working for everything from

Level 3





. Even


(STX) - Get Free Report

is rallying.

I, for one, think it is not sustainable. Perhaps we will get some positive chatter today, but if Microsoft doesn't do well -- and I don't have any idea of whether it will -- we will give back these gains. The group's got no momentum going into the summer and given that there is no Vista in sight, you lose a lot of the reason to buy. The buying is concentrated in FTTP and some cell-phone stuff, mostly because of competitive forces (cable vs. telephone, telephone carrier vs. telephone carrier).

I think that anything away from those two sectors in tech is just a trade. I sure wish I could be more bullish, but PCs have become like mid-ranges in the previous decade; they don't work as a theme. And the Web seems to be off and on. For every

Monster Worldwide

(MNST) - Get Free Report

, we get a


(CNET) - Get Free Report


I would be very careful away from the complex of telco/cable/wireless. There's just no there, there.

At the time of publication, Cramer was long Microsoft and Qualcomm.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here. has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from