Cramer: Undue Negativity in Retail
On a session that saw intraday trading push the Dow upwards as much as 180 points, you know Cramer is a fan of this market, which is finishing with strong momentum into the weekend.
With the street speculating on pullbacks and technical resistance, on Friday’s Stop Trading! Cramer said that he saw the possibility of some bearish action at the end of the trading day, as bulls profiting from the market’s strength may start their weekend early, thus putting the market in the hands of the bears.
On Thursday, Cramer made the bold recommendationto buy Citigroup , and needless to say he’s been receiving some flak for it. It’s been one of the most active names this entire week, and today hit its highest level in 6 months, up nearly 300% since the stock’s March lows.
As long as the stock continues moving up, the management of the company will remain stable, says Cramer, noting that Shelia Bair wouldn’t make such a move otherwise. He reminds of the “craziness” that occurred when Bank of America was down around $3 a share. Citigroup is a big, international bank and reminds that the government can begin selling its stake in the company on September 10th, Cramer says, giving big institutional players reason to bid up the stock. He also notes that volume has been up on Citi, even on a Friday that has seen relatively low volumes.
Moving on to the retail sector, Cramer sees all the media’s negativity on the sector for the upcoming back-to-school season as entirely unfounded. He’s on the opposite side of the spectrum, pointing out big moves in names like JC Penney , Urban Outfitters and Kohls because those are the places where people will be headed this season. “These stocks are up stocks,” Cramer adamantly explained.
To get Jim’s full analysis and get an idea of why he's bullish on Sears, check out the video!
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