Mad Mail: Setting Price Targets in This Market

Jim: With a market that swings so wildly, what are your suggestions on setting up price targets? Do you recommend setting sell orders in hopes of locking in some gains, or do you think that is too reactionary? What is a good method for setting price targets? Thanks for everything you do. --Michael

Cramer says: “We’re using yield…I prefer buying the stocks with accidentally high yields. So you start when a stock’s at 3.5% and then to 4% and then to 4.5% and then 5%. You buy a little bit at each level, and then you roll it right back up. It’s called trading around a core position.”

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Jim: Russia is engaged in a slow devaluation of the ruble. This makes me wonder…what if we were to devalue the dollar? What effect would that have on the stock market? What about on the bond market? Thanks for a great show! --Linda

Cramer says: “…The weak dollar’s great. The dollar got too strong. We have to maintain our competitive edge…A weak dollar keeps people at their jobs. I’m sorry. On Mad Money, we want employment. We don’t want foreclosures. We want people to keep their jobs. That’s why we like a weak dollar.”

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