Cramer: Stocks ‘Technically Driven’ Right Now
This market “has ceased to make sense,” Cramer said Tuesday.
The Dow’s gains on Monday reversed in the last 20 minutes of trading, ending the day lower. The housing numbers released today were bad. Oil is up, which potentially puts a drag on the summer driving season and, as a result, the consumer. But still the market is up and up big today, soaring 178 points.
Why the contradiction?
“The answer is that it’s all technically driven,” Cramer said.
The S&P 500 today broke through its 200-day moving average, and that key technical move has galvanized investors, pushing share prices higher.
Cramer also noted that “traditional tech” – the Microsofts , the Oracles , the Intels – have become much cheaper than the industrials. The comment followed his Monday Mad Money segmentin which he highlighted some of the cheapest tech stocks out there right now and explained why the deserved higher valuations.
Sprint Nextel makes a “great spec,” Cramer said, adding that he thinks the stock could “go to $6.”
The bull market in shoes charges on, with Cramer pointed to what he said was a late upgrade of Finish Line by Citigroup. He thinks the stock could go to $22-$23 “without a problem.”
“It’s important to know that this particular part of apparel,” Cramer said, “is hotter than any other area of apparel.”
Cramer finished Stop Trading! by discussing a call from his regular Game Plan segment last Friday, in which he said this Friday’s options expiration could give rise to a big down day this week. Because the strengthening euro seems to be the only real fundamental factor driving the market, any negative news on this front could be the necessary catalyst.
“I would certainly expect that if the euro down ticked,” Cramer said, “we’ll get rid of this move.”
When this story published, Cramer's charitable trust owned Intel.
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