Cramer: How To Play Apple Announcements
With beige book headlines just out on Wednesday afternoon, some of the notably positive news was found in the tech sector, encouraging Cramer to highlight some of his favorite tech plays right now. Among the names are Xilinx , Altera , F5 Networks and Ciena .
"When Altera says things are great, you gotta go screaming and buying Xilinx," says Cramer, who noted how many of these stocks have seen significant positive gains in the past several weeks. And Cramer thinks these names have plenty of upwards room to run.
In Tuesday's Stop Trading! segment, Cramer mentioned the possibility that Hershey would be well-suited for a deal with Nestle. Cramer especially thinks that Hershey's new management would certainly not put something of this nature out of the realm of possibility, "this is not the Hershey of old," Cramer said, "I think that they would entertain a bid."
Today's Apple event has also reminded the market about how investors react to announcements from the company. Cramer's strategy has been proven with regards to Apple announcements, as patterns repeat themselves: investors should buy the stock approaching an annoucement and sell immediately before the event, picking the stock back up about 3 days later. This is because a dip pattern routinely occurs immediately following an Apple annoucement, says Cramer.
"Natural gas is just a one-way ticket down," says Cramer, "it is very clear that there is a natural attrition." He explains that the cost to produce the fuel becomes unprofitable at the $2 level and drilling halts. Then the pattern will naturally rise the price back up to the $4-$5 range, a move which Cramer sees reflected in the current share prices of Nat gas-exposed companies. However, Cramer doesn't see the commodity going up much higher than that unless there is some sort of large-scale government endorsement for it as a mainstream fuel.
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