Cramer’s Game Plan: Ready for End of Quarter?
With the month and the quarter quickly drawing to a close, Jim Cramer thinks the week ahead could be whopper.
MONDAY MARCH 25
Monday could be a wildcard as the markets digest developments out of Cyprus .
Although Cramer does not expect Cypress to have a lasting impact on markets, events on Monday could generate a short-term ripple.
"As we approach the end of the quarter many hedge funds are underperforming and desperately need a catalyst to drag the markets lower," Cramer explained.
If Cypress generates uncertainty on any level, it could be just that catalyst. Some hedgies are so desperate for a sell-off, Cramer thinks they'll pounce on any bad news.
"I think they'll say things like we have a Lehman Brothers on our hands again. Why Lehman Brothers? Because that's code word for thermonuclear financial war."
However, Cramer says Cypress is nothing like Lehman – nothing at all. And if the shorts succeed in spooking the Street and generating a big sell-off, 'be greedy when others are fearful.'
That is, "If the S&P and Dow Jones Industrial Average open down huge on Cyprus, the market's a buy," Cramer insisted. The Mad Money host is confident bullish catalysts will generate tailwinds long-term and drive the market higher.
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Aside from Cypress, many other catalysts will also command Cramer's attention. On Monday, Cramer will also be watching dollar stores.
"I will pay close attention to Dollar General when it reports Monday," he said. "I think Dollar General's had too big a run but the group's regained its luster and the stock can be bought if it goes down on a quarter that's good but not good enough."
TUESDAY MARCH 26
Economic data will be on the front burner Tuesday.
"We have big news in the form of durable goods orders," Cramer said. "Given that Caterpillar gave us a real downbeat picture of its sales for February, you might expect that we could see a not-so-hot durable goods number. But autos, appliances and airplanes have all been very strong so I bet this number will be strong as well."
Housing will also be front and center as February new home sales figures are released as well as Case Schiller. "We know from listening to Lennar and KB Homes that housing prices jumped big in both January and February, so I expect terrific things."
WEDNESDAY MARCH 27
Retail takes center stage on Wednesday. "We hear from Five Below, one of my absolute favorite retail plays," said Cramer. "The company reports after the close and I bet, after the run, some might be disappointed. I'm secretly hoping that happens and the stock sells off because I'm a buyer on the pullback. Five Below has about the best growth trajectory there is in retail."
Employment will also come into focus as Paychex reports earnings. "I have to tell you that each time it reports the stock gets hammered because it is levered to small business and there's been no real small business growth. So be careful, however, it's been a terrific buy after the quarter," said Cramer.
Retail again will demand attention with PVH reporting. "The Street's turned on PVH a bit, worried about the integration of Warnaco into the family of PVH brands. I think that's a mistake and I would buy some both before and after the quarter if we get any weakness."
THURSDAY MARCH 28TH
Cramer will be looking at the demand for consulting services on Thursday. "Accenture reports and we are going to be all ears because this sector has become a real battleground," said Cramer. "Given the weakness in the rest of the group I would rather ring the register ahead of the quarter. "
Also Cramer will be closely watching beleaguered Blackberry. "I am a buyer of Blackberry on the belief that this franchise is intact but I'd only buy on weakness," Cramer said.
And Cramer reminded that with the Good Friday holiday, Thursday is the last day of the quarter. "It's been an amazing quarter. I wouldn't be surprised to see some defensive buying of stocks on Thursday, if only to preserve these fabulous gains."
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