Trading the New Apple iPhone

Steve Jobs’ unveiling Monday of the new 3G Apple iPhone brought yet another wave of enthusiasm for the company and its consumer-friendly technologies. The announcement won’t do much for the stock, though.

Cramer has been saying all along that Apple shareholders should be selling their positions piecemeal in the run-up to the new iPhone launch. Everything Wall Street could have expected from the new product – lower price point, faster processor – has already been priced in. With no new data points to animate the stock, it’s time to take profits.

Stop Trading, Listen to Cramer!
Stop Trading, Listen to Cramer!   

Admittedly, “Apple’s been a great trade in a really bad market,” Cramer said. But “we’ve had a very big run. Let’s be sensitive to that.”

Cramer recommended selling three-quarters of an Apple position by market close Monday and letting the rest run.

Research in Motion, a rival in the cell-phone space, still has “a lot of momentum,” Cramer said. If the stock dips below $120, he recommended buying more.

Switching topics, Cramer said he doesn’t see a bottom in the housing market until at least 2009. Homebuilders’ bond ratings continue to breakdown, which is bad news for banks like National City and Washington Mutual .

“There’s more pain ahead,” Cramer said.

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