- stock market hassles and
- the falling Euro
Easy There, Quick Draw McGraw Posted at 11:31 a.m. EDT on Friday, Nov. 8 This business is humbling. Don't be humbled even more than you should be. That's the takeaway of some horrendous after-hours trading that we just saw last night, a night that should serve as a constant reminder of how you simply must wait and hear the conference calls of every stock before you pull the trigger. Making money isn't about who is the fastest, it's about who is the most thoughtful. Last night, within just a few minutes of trading, we got reports from Groupon ( GRPN) and Priceline.com ( PCLN), two red-hot Internet plays that had already been under pressure in the wake of the non-Twitter rout in everything social, mobile and cloud. Priceline fell 50 points even as the company reported a fantastic quarter as the guidance was perceived as being incredibly weak. Groupon dropped a $1 off a $9.90 basis as traders took one look at the quarter and decided that the bloom of the two new CEOs was off the rose and it was time to skedaddle. DIS) announced a quarter that looked terrific on the surface, but traders dumped the stock down to $64, off a couple of bucks, on what looked to be weaker ESPN numbers. Given that ESPN is one of the best growth engines for the company, which was the kiss of death for the stock, which has been on a tear because of ESPN as well as theme parks and some extremely powerful movie franchises. If there were NFL coaches in this game, they would have thrown the red flag and the refs would be right in the booth taking a look at the replays of the trading in these fine companies. In our business, that's the equivalent of reading the headlines, studying the release, but the most importantly -- and as I always say -- listening to the conference calls.
The Falling Euro Hammers Oil Stocks Posted at 12:02 p.m. EDT on Thursday, Nov. 7 Currencies bore me. Why? Because I know they bore you. Unless you travel overseas, you don't think about currencies. They are irrelevant to almost everyone reading. But some days, currencies are almost all that matter. I say "almost," because this is Twitter's ( TWTR) day. However, a cut in the interest rates in Europe this morning -- some called it a surprise cut, even as almost all the people I know were looking for it --caused the euro to get hammered and the dollar to shoot up. Because oil is denominated in dollars, that allows more oil to be bought for less money, and that's causing a huge decline in everything oil-related, even as the companies themselves are doing extraordinarily well. EOG) reported a magnificent number and gave a big guide-up, but it gets hit anyway. The plunge in the euro and the sharp rise in the dollar may not last. I would be a buyer of the oils, not a seller, because I believe, in the end, that demand for oil is still strong, and the assets in the ground are huge. Still, though, I see on my screen what you see, and we know currency is the reason, not the earnings, and that's where I think the opportunity comes in. Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.