Cramer’s game plan: Market a Twitter next week
It looks like next week could be a big week in the market.
The Twitter IPO is expected to price on Wednesday November 6th and begin trading on Thursday November 7th.
Also a slew of earnings are coming that Cramer thinks could wield significant influence over sentiment.
Therefore, without any further ado – Mad Money presents Cramer's game plan for the week ending Friday November 8th.
MONDAY NOVEMBER 4TH
Monday may as well be National Independent Oil Day. "After the close we're going to hear from Anadarko, Carrizo and Pioneer Natural Resources," Cramer noted. "I think all three will raise production numbers. However, be aware that oil has plummeted here and if crude goes five dollars lower, to $90, then these stocks could all get hit. If oil rallies on Monday, however, then I would be a buyer of any or all of them."
TUESDAY NOVEMBER 5TH
Tuesday could bring a little excitement with Tesla scheduled to report. "You know I think that Tesla's a cult stock and if CEO Elon Musk announces a deal in Europe or China than this one see's $200. Unless he announces a giant recall, I don't expect any weakness," Cramer said.
Cramer will also be closely watching biotech as Regeneron gives its results. "If you're not already long, I think you stay on the sidelines, no need to get aggressive yet."
Also, new media takes the spotlight as AOL delivers results. "AOL's earnings of late have initially been greeted with catcalls but when things settle down, then people start buying. I think 2014 is going to be a terrific year for AOL."
On top of all that Cramer will also go drug store shopping as CVS reports. "CVS has been on fire, lately. I like it but I want to buy it lower."
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WEDNESDAY NOVEMBER 6TH
On Wednesday the market will likely be giddy with the expected Twitter IPO pricing after the bell.
"I believe that this company is worth at least $20 billion to Microsoft or Apple or Yahoo and that pretty much defines my upper limit for what it's worth," Cramer explained. "I don't want to put a dollar amount on the stock yet because the company and its underwriter, Goldman Sachs, might increase the number of shares. But the $20 billion limit is as high as I want to go."
Therefore, "If Twitter is valued at less than that, I would recommend buying it and then buying more on the way down. If it's valued at more than that, you'll just have to take a pass."
In addition, Cramer believes Wednesday may bring opportunity as Whole Foods reports. "Last time the stock fell about ten percent after it reported and I was salivating when others were spitting it out. Since then it has advanced almost 20% from those lows. So the trade was to wait until the onslaught and buy it on the way down. Guess what? I think this time will be the same."
Also Cramer will be watching the energy sector as Cimarex reports. "I think it's a terrific play on increased production. I want to buy it if Pioneer, Anadarko and Carrizo take off after their earnings on Monday."
There's more. Cramer also inteds to keep a close eye on SolarCity, which also delivers numbers. "If Tesla pops, I think Solar City could too because they are both Elon Musk operations. Do I think it's right that they trade together? Doesn't matter. I don't make the rules," Cramer said.
THURSDAY NOVEMBER 7TH
Expect a Mickey Mouse day in the market. "Disney reports on Thursday," Cramer said. "I think the decline in gasoline prices alone could be enough to lift Disney's numbers for the next quarter. So wait for the usual critics to express their disappointment and then be ready to pounce Friday."
FRIDAY NOVEMBER 8TH
Friday will be all about the jobs number. The Labor Department postponed the October jobs report to Friday due to the recent government shutdown.
Cramer says prepare for some selling.
"If we get a bad number, some people will say 'holy cow this economy is weak' and they will sell. If we get a strong number, taper talk will intensify and that too should generate selling."
* Cramer also noted that in the last 50 years, there have only been four other times when the Standard & Poor's 500 was up more than 20% in the first ten months of the year, and all for times the S&P posted gains in both November and December.
"I don't normally put that much stock in monthly historical data, but I'll admit that if a pattern's been replicated 100% of the time, then I have to believe there's something to it."
Therefore, Cramer says his MO for the next 5 days will be to buy weakness before the averages rebounded.
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