Cramer: Stay Bullish on Tech, Oils & Banks...HAHA

Discussion in 'Wall St. News' started by S2007S, May 7, 2009.

  1. S2007S


    This is one little bit of opinion from cramer you just have to read, he is so upbeat about the entire market, just 2 months ago he declared selling every stock and that the depression was here, fast forward 2 months and everything is peaches and cream, buying the dips and especially the banks in this market he now calls a bull market. SAD SAD SAD

    Can someone tell him were only in the beginning stages of this severe recession and that the depression he declared 2 months ago that to him has ended so quickly, will begin sometime over the next 12-18 months.

    Cramer: Stay Bullish on Tech, Oils & Banks
    Posted By:Tom Brennan

    Don’t despair just because the Dow, Nasdaq and S&P 500 pulled back on Thursday, Cramer said. Don’t let short sellers, bears and other otherwise negative Wall Street analyst tell you that this is the beginning of a long trip back down to Dow 6,500 – or worse. It is not. Today’s action was merely a natural pullback after a two-month rally in stocks. So bide your time, look for discounts and get ready for the bulls’ return.

    Big advances followed by sharp pullbacks – that’s how bull markets work, Cramer said. A 5% to 10% decline is to be expected after the major moves we saw in JPMorgan Chase [JPM 35.24 -1.98 (-5.32%) ] and Goldman Sachs [GS 133.73 -5.49 (-3.94%) ]. And the same goes for tech. The Nasdaq has jumped 11% since its recent bottom. Would you expect that to continue uninterrupted? Of course not. And don’t be surprised by the dip in oil, either, especially when a barrel of crude has risen $20 in a straight line.

    Cramer was adamant today that investors not sell bank stocks, not when they are just about to move higher. Nationalization is no longer an issue, balance sheets are looking better, net interest margins are on the rise, and the Treasury Department’s stress tests have actually done more to help the sector than harm it. The banks are buys right now, whether they need to raise capital or not. Goldman Sachs? Buy. New equity offerings from Morgan Stanley [MS 27.14 -1.37 (-4.81%) ] and Wells Fargo [WFC 24.76 -2.08 (-7.75%) ]? Both are buys.

    Cramer did offer one cautionary note, though. Wait for a pullback of 5% to 10% on any stocks with big gains. But again, that kind of decline is typical of a bull market.

    A couple of other points worth mentioning as well: The first phase of the bull run is over, and the next group of companies to move higher will be, not just those that survived the depression that ended in March, but also those that thrive during the recession we’re in right now. Also, there are more money managers and retail investors who want in this market than out, particularly the bank stocks. So buy those equity offerings – everyone else will.

    Cramer thinks the pullback will play out with short sellers adding to their positions just as the market approaches his predicted 5% to 10% decline level. As we said, they will think this is the beginning of another downturn. But at the same time, the bulls will be looking to get back in at that level. And the wave of buying – in tech, the oils and banks – should turn the market right back up.
  2. Triple A sell rating.
  3. ipatent


    Is Cramer making a reflation call?
  4. S2007S


    Dont pay for the subscription but here is a little of what he said today, and just to think weeks ago he said not to touch the banks, unbelievable.

    Banks Will Keep Running Over the Shorts

    By Jim Cramer

    About this article:
    Nope, didn't quit. People furiously buying the banks right into the bell. Same with the oils. Historic moves, once-in-a-lifetime moves that seem to know no bounds, and those who were shaken out by yesterday's selloff seem to scramble to get back in. I am adamant here that banks and oils aren't done running. They were the two cohorts that have been priced for a depression when this rally began, and now they are priced for a recession, but still a deep one. I know people want to take profits in a Wells Fargo or a Citigroup or a Bank of America, but the big dogs still want in. How do I know this? Take one look at Wells Fargo, which truly told you everything you needed to know. Here's a bank that, two months ago this week, was supposed to be nationalized because it couldn't raise money. Today it...
  5. ipatent


    Cramer is shilling for the PPT right now. The banks need to raise capital, and he is pumping their share prices up at the behest of Geithner so the capital will come from the sheep who watch his show instead of the goverment.
  6. The bulls are out in full force at a time when the economy is deteriorating at as fast a rate as ever - it's going to be an epic bear run.
  9. ipatent


    We'll see if Cramer says sell before the next big crash, which should be big and swift when it eventually happens.