What Goldman Means for Next Week
Regardless of how the Goldman Sachs news plays out, Cramer said Friday, investors have a chance to profit from it. Here’s his Game Plan for the coming week:
First, wait for stocks to settle down on Monday. The negative headlines will rule the weekend, so Cramer recommended waiting until midmorning to buy. When the time comes, look for strong-performing companies that have nothing to do with today’s controversy. Think Intel and the semis, CSX , PPG Industries and UPS . All of these companies either reported or pre-announced great numbers, but were taken down by Goldman . That’s your opportunity.
Also, look for financials other than GS. Right now, Cramer likes JPMorgan Chase and Bank of America , both of whom this week reported fantastic quarters. And watch for Citigroup’s release on Monday. This stock lost 5% since yesterday because of Goldman, but that could end up being a great opening if the company offers a bullish report.
The industrials work, too, Cramer said. At least some of his favorites might. Boeing dipped 2% today, giving investors a chance to get in on what Cramer thinks is a multiyear aerospace cycle. And he’s a big fan of Caterpillar and Deere , which took their hits as well.
Ford , in particular, is a Cramer favorite. Like so many other stocks, Ford’s run was halted today as well. But he thinks it could reach $17 after the company’s announces earnings, thanks to bond ratings upgrades and estimate bumps.
Cramer also likes the retailers and retail derivative plays. Go with Hot Topic, Scotts Miracle-Gro, Home Depot or Amazon.com . AMZN was down 3% today, making for a good entry point for Thursday’s quarter.
Finally, there’s Apple . The stock was rallying big right into Friday until it hit the Goldman Sachs wall and closed down 1%. Be ready, Cramer said, if the market doesn’t like its report on Tuesday. This isn’t so much a play on the quarter as it is “the next few years.”
Cramer emphasized again that Goldman shouldn’t scare investors out of stocks. In fact, today’s sell-off has created great values in names that have no connection to the controversy.
“Next week is your chance to buy them,” Cramer said.
Cramer's charitable trust owns Apple, Back of America, Goldman Sachs, Home Depot, Intel and JPMorgan Chase.
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