HDSN, CETX, GLD: Rev Shark's Views

Jim Cramer shares his views every day on RealMoney. Click here for a real-time look at his insights and musings.


Shark Bites: 2 Stocks to Check Out

Posted at 1:33 p.m. EDT on Thursday, Dec. 29, 2016

The indices have bounced off the lows of the day, but the action continues to be extremely slow and dreary. There just isn't much interest, and many traders are giving up and finding something more interesting to do. Breadth is around flat and the new highs list is up to about 140 now. Precious metals are still leading, but outside of that there aren't any clear themes.

What we have to watch for now is some sudden moves caused by last-minute allocations, program trading and other end of the year games. There is really no way to predict how those things will manifest themselves, so don't start thinking you have an edge even if you know they are coming.

I'm still digging for some interesting trades and am starting to see a little more of interest. I reentered a position in Hudson Technologies (HDSN) , which we did very well with off the November lows. This is a play on the chemicals used in refrigeration, and the company is expected to post solid numbers in 2017. This is one of my top low-price plays for next year. I'll be listing more of them in an upcoming column.

Another play I added to today is Cemtrex (CETX) . CETX is a contract manufacturer of electronic and monitoring systems. It posted annual earnings for its fiscal year of $0.59, and trades with a trailing P/E of just 10x.

I have very little trust in the indices, but some selective trades should work if the program trades aren't too broadly negative. This is not a very good trading environment at the moment.

At the time of publication, Rev Shark was long HDSN and CETX, although positions may change at any time.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned .
 

Action, Such as It Is, Is All About Gold and the Dollar

Posted at 10:45 a.m. EDT on Thursday, Dec. 29, 2016

The market is acting like many folks have decided to close up shop and call it a year. Volume is pathetic, the indices are barely moving and if you are looking for pockets of trading action, you won't find much. Breadth is positive, but we don't even have 100 stocks on the new 12-month high list.

The most interesting group on my radar right now is precious metals. There is a decent bounce in gold and silver, which is a function of a weaker dollar and the end of tax loss selling. Gold (GLD) is way off its summer highs, but traders are likely looking at how gold acted back in January and February, after similar poor action a year ago.

Precious metals are driven primarily by currencies, so if you want to trade them keep on an eye on the PowerShares DB US Dollar Index Bullish ETF (UUP) . The inverse correlation with GLD is quite high. Ultra Gold ETFs NUGT and JNUG are leading today.

I was hoping to find some quick trades, but so far it is extremely slow and random on my screens. It is an easy environment in which to force things, so I'm working hard not to do that.

Keep in mind that this is a very ripe environment for program trading. It is very thin and the computers can move things around quickly if they go to work. Big swings on the last day or two of trading are not unusual.

Precious metals like Alamos Gold (AGI) , McEwen Mining (MUX) , Silver Wheaton (SLW) and Richmont Mines (RIC) are the focus, but the thinness and volatility undercuts short-term trading.

At the time of publication, Rev Shark had no positions in the stocks mentioned.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned .
 

Bulls Tripped Up by Focus on Dow 20k

Posted at 10:45 a.m. EDT on Wednesday, Dec. 28, 2016

Market players have generally been aware of the potential for some end-of-the-year selling, but many were caught by surprise Wednesday due to all the talk about reaching the 20,000 point in the Dow Jones Industrial Average. Many traders, including me, were looking for the 20,000 level to fall before any real selling set in.

The 20,000 level was an ideal "sell the news" setup, but, as is so often the case, it may have been too obvious. Rather than wait for the obvious trigger, the selling started after a small gap-up open, when momentum failed to build. All those folks that were waiting to sell into the 20,000 euphoria had to scramble to sell into the reversal. That means there was no quick support because the typical dip buyer was still stuck holding long and waiting for 20,000.

My biggest concern at this point is that we may not see much of a bounce back before we close shop on Friday afternoon. As I've mentioned, the last two days of both 2014 and 2015 were trend-down days with losses of about 1.5%. The S&P 500 is now down about half that amount, but in this case we ran up to a much greater degree over the last six weeks or so. Dip buyers don't have the same motivation this week as they normally do.

I've taken a few stops and really don't see anything I'm interested in trying to buy right now. We are dealing with end-of-year factors that are quite different than what we'd see in a more-typical market.

We will see how we close, but I'm not expecting much of a recovery today. I'd like to do some buying, but it will have to wait until this sloppy action abates.

At the time of publication, Rev Shark had no positions in the stocks mentioned.
 
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned .

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned .

More from Investing

Biotech's Coming Back to Life: Cramer's 'Off the Charts'

Biotech's Coming Back to Life: Cramer's 'Off the Charts'

Papa John's: The Noise and the Stock Price

Papa John's: The Noise and the Stock Price

CSX Rises on Earnings, Revenue Beat

CSX Rises on Earnings, Revenue Beat

United Beats Second Quarter Earnings Estimates

United Beats Second Quarter Earnings Estimates

Video: Here's How Goldman Sachs May Change Under David Solomon

Video: Here's How Goldman Sachs May Change Under David Solomon