- the folly of China "weakness,"
- an intriguing idea for a new ETF, and
- Apple's breakout.
The China Weakness That Wasn't
Posted at 3:04 p.m. EST, March 2, 2010 The hazards of selling off of China weakness that doesn't happen continue today. Look at Cliffs Natural ( CLF), Freeport ( FCX), Vale ( VALE) and BHP Billiton ( BHP). These are minerals companies that are supposed to be going down because of the pricking of the Chinese bubble. Oops. Or the coal companies: Patriot ( PCX), Massey ( MEE), Arch Coal ( ACI), Peabody ( BTU). They are supposed to go down because of the Chinese slowdown. Or the fertilizers like Mosiac ( MOS) and Potash ( POT) and Agrium ( AGU). They are supposed to be down as China orders less food. All of these derivative plays are killing you today because, in reality, the Chinese "slowdown" isn't much of a slowdown at all. As I mentioned last Friday after interviewing CSX ( CSX) CEO Michael Ward, China's been ordering like crazy in the last month, and you can say whatever you want about what ultimately will happen in China -- it sure isn't happening yet. Any of these derivative trades, whether they be off Dubai or Greece or the U.K, which many of us are writing about, can backfire. You may want to do them. But remember to cover. They tend not to work over the long term. Random musings: "Cash for Clunkers" to give us energy independence? How about putting a tax on imported oil so we switch to domestic natural gas? Which makes more sense? At the time of publication, Cramer had no positions in the stocks mentioned.