Stocks continued their irrational back and forth on Thursday, as the Dow climbed 103 points just a day after dropping 173 points. And that followed a 196-point jump on Tuesday. These seemingly pointless moves are enough to confuse any investor, especially when the same news that hurt the market yesterday (oil prices) took us right back up today.
So which move do you trust, up or down? Cramer thinks we go higher, basing his call on G.A.S. – Goldman Sachs , Apple and Schlumberger . Our hopes for a global economic recovery have been pinned on the banks, tech and oil, and these sectors led the rally that started in early March and lasted through much of May. If they perform well, the overall market should, too.
Forget all the other tells – the housing starts, durable goods, Treasury yields, oil inventories and unemployment claims. Investors should look only to the banks, tech and oil right now. Those who want a broader view of each sector can consider a few other stocks as well. In tech, watch Research in Motion and Google. For oil, keep an eye on Transocean and Anadarko Petroleum . And among the financials, JPMorgan Chase and Bank of America should give you a good idea of the market’s next move.
But investors who want to keep it simple can stick with Cramer’s top three: Goldman, Apple and Schlumberger.
“As long as G.A.S. goes higher,” he said, “we’re going higher.”
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