Game Plan for the Week of July 23
The market has had a good run, but things are starting get precarious, Cramer said. That’s why he doesn’t want Home Gamers buying ahead of next week’s earnings reports. It’s time to play it cautious.
Texas Instruments reports Monday, and Cramer wants investors to wait for a pullback that could come after the call before they buy the stock. The fact that TXN barely dropped today while the Dow fell 149 points is a good sign, he said.
Also in semiconductors, it’s time to schnitzel a little NVIDIA, which is up 6 points from where Cramer recommended it. He thinks AMD might try to knock the stock at its analyst meeting next week.
On Tuesday, Countrywide Financial gives investors a glimpse of how bad housing is, and Cramer said it’s just plain awful. The best gauge for the sector, the PHLX Housing Sector, HGX, is still above $200, but it won’t bottom until it takes out its price from this week last year: $180.
Also Tuesday is Amazon. Cramer expects the Street’s reaction to be negative, so it’s probably best to wait before buying some.
On Wednesday, Boeing, Colgate, ConocoPhillips, Corning and Apple report. Boeing stayed strong through the recent bad tape, which is a great sign of strength. If it sinks to $100, Cramer thinks it’s a buy.
Colgate-Palmolive is a good weak-dollar play, but it’s at a high, so it’s less tempting than Cramer would like.
ConocoPhillips could be downgraded because of weakening refinery margins industry-wide even though the company is supposed report a strong quarter. Watch for that, Cramer said. Don’t buy before the numbers are released.
The one exception this week is Corning , which Cramer recommends buying ahead of the report on Wednesday. Buy even more if the prices drops at all. He’s basing the decision on Corning’s dividend and buyback announcement this week. Companies don’t do that and then disappoint a few days later, Cramer said.
As much as he likes Apple , Cramer thinks it’s time to take some off the table because it’s near his $150 price target. Remember, don’t be greedy. Bulls, bears, hogs…
Bunge, an agriculture play, missed the mark last quarter but then rebounded. Cramer thinks this could happen again, so buy if there’s weakness after Thursday’s report. Ag is one of his six raging bull markets.
Celgene, which also reports Thursday, could also drop after the quarter. Cramer likes it as a long-term pick, so investors might want to pick some up the day after.
Cramer would take profits in Cummins too. It’s near its 52-week high, so at least regain your costs.
Level Three Communications should report a poor quarter, but Cramer likes it too much to get out. On the other hand, if you can’t take the heat, get out. But he recommends buying on any weakness.
Chevron and Exxon Mobile are on stage Friday. Take profits on half and let the rest ride, Cramer said.
Bottom Line: Cramer thinks the time is right to take profits. The only way to game next week, he said, is by selling some of your stake before your stocks report. Don’t get greedy, get rich.
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