Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- technicians on trial;
- the end of the D.C. drag; and
- Google as growth driver.
Technicians on Trial
Posted at 11:57 a.m. EDT, Wednesday, July 7 Someone forgot to tell the euro about the "
The End of the D.C. Drag on Stocks?
Posted at 2:41 p.m. EDT, Thursday, July 8 If Tim Geithner's got the juice, and his statement on CNBC that capital gains and dividend taxes may stay as low as they are holds water, then we have lost the principal reason to sell stocks, particularly high-yielding dividend stocks. Moreover, any signal, especially one expressed on Larry Kudlow's show on CNBC, that these two rates will remain low is a sign that the Obama administration recognizes that the stock market is far more important than they thought when it comes to the November election. Larry and I fought hard for the dividend tax cut, and people in Washington know that. This signal is very important and cannot be dismissed. Until this interview, I regarded this administration as an opponent of capital and an endless champion of labor, particularly municipal, state and federal workers. Could it be that the investor class, those brainwashed into using the stock market for savings for retirement and college, has been heard by Obama? Could it be that someone in the White House figured that the indoctrination of the use of stocks, beginning under Reagan and continuing to George W. Bush, has led to a precarious situation for anyone who believes that stocks don't matter? By the way, before you email me, I know that dividends and capital gains don't figure into IRA/401(k) thinking. But that's just a limited understanding of the situation. In fact, they matter tremendously because retirement asset net worth will go down substantially if stocks lose value from the tax changes, and I think they will lose tremendous value. Hence, the thrust of my opening: You are losing a great reason to dump stocks, so stocks are less likely to be dumped. Sorry for the circular reasoning. You can see a possible scenario developing here: The White House and the Democrats in Congress are beginning to see that the whole Big Left Thing is undermining confidence, eroding savings, causing companies not to hire and leading individuals to avoid the risk of create new enterprises. The fact that this litany is now accepted truth may also have something to do with this new tax stand. In other words, the Obama administration's war on capital may at last be over, or at least in truce mode. To me, this change may also throw the weight of evidence in favor of
Google Can Goose the Market Yet Higher
Posted at 9:59 a.m. EDT, Friday, July 9 A market that has driven far and fast needs positive surprises to keep moving. When the positive surprise comes from one of the biggest-cap tech companies that is NOT Apple ( AAPL), it can have a more dramatic effect than people might think. I remember when Google ( GOOG) lost a quick 150 points off of China. If you put back just 10% of that, you may not have done justice to the reversal of Google's Chinese fortunes. Google in itself was a tremendous engine of the Nasdaq, an index that needs reinvigoration given the deflation of Research In Motion ( RIMM) (thanks to Apple) and Amazon ( AMZN) also (also thanks to Apple and the consumer malaise). I agree with Doug Kass that after a run like this, it's time to play