Contrary to popular belief, corrections can work both ways in the stock market, James Cramer told listeners on his
"RealMoney" radio show Friday.
Cramer noted how
Whole Foods Market
( WFMI) shot up in the aftermarket Thursday night after huge quarterly profits. Cramer called it a "correction" to the upside.
"The analysts were incorrect when they told you to sell the stock," said Cramer. "They were corrected when Whole Foods came up with big growth numbers."
Cramer expects all the analysts will be upgrading the stock in the near future, which should fuel another run.
"Some of them wrote speeding tickets for the stock because they didn't think it would grow in double digits," Cramer said. "They can't beat the market because they are the market."
For example, when Raymond James downgraded
Friday, you should use that as a buy signal, said Cramer.
With a highway bill on the way, Cramer is watching Washington for stock ideas. His top two picks are
, equipment makers that should benefit from the added spending on U.S. highways and byways.
Another caller congratulated Cramer on his successful
Smith & Wesson
( SWB) call from
the day before. The stock ran up after Cramer spoke about gun control legislation in Congress. And he reminded listeners to ring the registers if they made money on the stock.
Elsewhere, housing stocks are still OK in Cramer's opinion. A lot of the housing stocks were selling off Friday, which is fine with Cramer. He said investors may be able to pick them up cheaper next week if economic data causes interest rates to tick up.
Cramer referred a caller with a question on
( TUNE) to the latest research note by
editor, Will Gabrielski. Gabrielski says he is still positive on Microtune despite a selloff on margin worries.
When a caller asked Cramer for his thoughts on the radio frequency identification, or RFID, barcode technology, he recounted his visit to Long Island to meet with the management of
( SBL). Unfortunately, that meeting led to big losses because the management was overpromising and underdelivering. Cramer likes RFID stocks but won't get burned again by Symbol until there is a management change.
earnings were disappointing and Cramer won't recommend it. On the other hand, he said
could go higher.
He was far more pleased with
quarterly report. Yet he still sold shares in
ActionAlertsPLUS to reduce a position that had grown too large.
Cramer said he does not like insurer
, which he called overvalued.
, Best Buy and
Advanced Medical Optics
( WON) and
At the time of publication, Cramer was long Cabela's. Gabrielski held Microtune in his model portfolio.
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
Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
clicking here. 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."
William Gabrielski is a research associate at TheStreet.com and is accredited with a Series 7 license. In keeping with TSC's editorial policy, he doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Gabrielski welcomes your feedback;
to send him an email.
Interested in more writings from William Gabrielski? Check out Stocks Under $10. For more information,