According to Jim Cramer, investors shouldn’t read too much into Thursday’s market action. He reminded investors that the market has gone up for six days in a row on no real news, so it’s very reasonable to trade lower for a day on nothing.
Cramer pointed out that we have a number of bullish items, such as improving jobless claims, weak oil prices and bullish guidance from Wal-Mart (WMT), that should give the bulls some comfort in the short term. Plus, Cramer believes that investors should stop fearing high gold prices.
On Wednesday’s “Mad Money” TV show, he told viewers that the rally in gold is actually a good thing, not a sign of pending doom for stock prices. Cramer highlighted three reasons why the gold rally is good: It means the dollar is falling, which is bullish for construction equipment companies, aerospace firms and drug makers; high gold prices mean no deflation; and high gold prices means reflation, a situation in which companies are growing their earnings.
Cramer recommended investors play gold with the SPDR Gold Trust ETF (GLD) and the Market Vectors Junior Gold Miners ETF (GDXJ). He said higher gold prices are good because they can help the economy and your portfolio.
Recently, Cramer found opportunity in companies that benefit from a weak dollar, five stocks for this bull market and health care stocks. Here are some Cramer highlights from over the past week as aggregated from his "Mad Money" TV show, the "Stop Trading!" segment on CNBC and his RealMoney blog posts (these blog post require a RealMoney subscription).
Cramer’s 5 Stocks for This Bull Market: Cramer highlighted 5 stocks that could produce big returns into the end of the year. On Monday’s “Mad Money” episode, he told viewers that it’s time to circle back to the leaders that have stalled out and back to anyone who can take advantage of a weak dollar. The Cramer’s 5 Stocks for This Bull Market portfolio includes Apple (AAPL) and Google (GOOG).
Cramer’s Weak-Dollar Stock Plays: Cramer sees opportunity in playing a number of stocks off the weak dollar. In a Nov. 9 blog post, he wrote: “Ford Motor (F) with a gigantic international business does so well in this environment.” The Cramer’s Weak-Dollar Stock Plays portfolio includes Federal Express (FDX) and Deere (DE).
Cramer’s Perfect Moment Stocks: Is the market at a perfect moment for the bulls? Cramer thinks it is due to the fact we have no more data points and relatively few earnings reports but plenty of shorts. In a Nov. 9 blog post, he wrote: “So, to sum up, no new data points that could derail us. Nothing to trade off of. Seasonably strong moment. Too many bears. Too many analysts and pundits negative. Just a good moment for the bulls.” The Cramer’s Perfect Moment Stocks portfolio includes RadioShack (RSH) and Microsoft (MSFT).
Cramer’s 3Com Deal Stock Plays: Cramer believes the Hewlett-Packard (HPQ) buy of 3Com (COMS) bodes well for a bunch of tech stocks. In a Nov. 11 blog post, he wrote: “I think the H-P buy of 3Com is a wakeup call to all of the inexpensive tech stocks that are languishing -- your time of non-independence will soon be upon you.” The Cramer’s 3Com Deal Stock Plays portfolio includes JDS Uniphase (JDSU) and Skyworks (SWKS).
Stocks Helped by China’s Industrial Focus: Cramer thinks China’s 16% industrial growth will boast lots of stocks. In a Nov. 12 blog post, he wrote: “How in the heck can you get 16% industrial growth and lower-than-expected consumer price inflation? How is that possible? Yet that's what we saw from China last night, and that's a tonic to pretty much everyone who is waiting for our own stimulus to kick in.” The Stocks Helped by China’s Industrial Focus portfolio includes Joy Global (JOYG) and Peabody Energy (BTU).
Cramer’s Health Care Stocks That Won’t Die: Cramer thinks the house passage won’t kill the health care sector. In a Nov. 9 blog post, he wrote: “You not only can stop fearing the sector, you can go overweight it -- not to mention that with Washington defanged, you can bet that the resistance upward will not be so stiff.” The Cramer’s Health Care Stocks That Won’t Die portfolio includes Stryker (SYK) and Humana (HUM).
