The Dow could be at Cramer’s prediction of 14,548 by the end of the summer at the rate it’s moving now, he said on today’s Stop Trading!.
“This is a great summer rally,” he said.
Speculation that Warren Buffett could take a position in Hovnanian sent homebuilders like KB Home , Beazer Home USA, Lennar, and Centex up today. But given Buffett’s buying style (“Buffett likes to go big when he goes in”), Hovnanian isn’t the most obvious choice.
“It would be more likely to be Pulte Homes if you kept the historic tradition of what Buffett does,” Cramer said, adding that Hovnanian is too regional of a company and Buffett’s focus is national.
“I have been saying that this group is too hard to short,” Cramer said. “Today is a reason why you see it’s too hard to short. Because just a rumor of a whiff of a possible” Buffett move and stocks go up. Cramer isn’t recommending investors buy housing at the time either.
One stock that he does think is worth buying is Grant Prideco. Cramer said the talk about oil infrastructure building during GE’s earnings call is a sign that this stock is ready to move.
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