Skip navigation
MOST POPULAR RELATED TAGS
  • TOPICS
  • SECTORS
  • COMPANIES

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMER'S SOUNDBOARD
Admit it: You’ve always wanted to hit the “They know nothing!” button. Here’s your chance.




Mad Money PhotosCRAMER QUICK PICS
Check out the Mad Money host on set, back to school, behind the scenes and more.




Mad Money VideosVIDEOS
Get all your favorite Cramer clips right here.





ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It’s Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money’s mobile. Get show highlights sent to your phone.




Text Size
May.02
6:40 PM ET

Have you noticed the massive sector rotation taking place right now? A ton of money is moving out of industrials and commodities – especially agriculture and oil – and into tech, retail and the financials. Sector rotations happen all the time, and they’re often for the right reasons. But Cramer is skeptical about this one.

Cramer has nothing positive to say about the financials. The strength in retail is going to be short lived as it is pegged to the stimulus checks and the weather getting warmer. As for tech, well the Mad Money host just threw that entire sector in the Sell Block on Thursday.

So if he’s right, and this rotation is bogus, then there’s likely going to be another rotation right back into the old groups. But the only way to know for sure will be to look at some of next week’s earnings.

Cleveland-Cliffs [CLF  Loading...      ()   ], the largest independent producer of iron ore, will be the first hint when it reports on Monday. If the stock rallies after the earnings, the rotation out of commodities could be over right then and there, Cramer said. Anadarko [APC  Loading...      ()   ] posts numbers Monday as well and Cramer is predicting good things. If he’s right and the company beats, look for a rotation back into natural gas.

Tuesday’s evidence will come in the form of earnings from Cisco [CSCO  Loading...      ()   ] and Fannie Mae [FNM  Loading...      ()   ]. Both these stocks are critical to keeping the current rotation alive, according to Cramer. But remember when Cisco reported last quarter and single-handedly killed the tech rally with its awful guidance? That could happen again. And the order is equally tall for Fannie, a titan in the sector that is crucial for the financial rally to continue. The company needs to post a smaller-than-expected loss coupled with an equity financing for Cramer to believe the rotation into financials has any legs.

Finally, Wednesday brings Transocean [RIG  Loading...      ()   ] earnings. Cramer’s favorite deep water driller holds the final key to knowing whether this rotation is over. “You will quite simply not get a rally [in oil] without a great number from RIG,” he said. He fully expects the earnings to beat estimates.

By then, you will know whether this rotation from industrials and commodities into tech, financials and retail is legit. Cramer doesn’t think it is, but only the earnings will tell for sure.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

© 2009 CNBC, Inc. All Rights Reserved

Tools:
PrintEmailAdd This share icon
Next Post
  • digg share
ADD COMMENTS
Remaining characters


Current DateTime: 01:08:03 14 Nov 2009
LinksList Documentid: 29778428

Current DateTime: 01:04:47 14 Nov 2009
LinksList Documentid: 29779196

Current DateTime: 01:04:04 14 Nov 2009
LinksList Documentid: 29779199

Current DateTime: 01:02:14 14 Nov 2009
LinksList Documentid: 29779198
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2009 CNBC, Inc.  All Rights Reserved.
A Division of NBC Universal
Thomson ReutersThomson Reuters