Macworld starts Monday and even though it’s unlikely Apple will unveil anything on the scale of last year's iPhone, chances are Steve Jobs will talk about soaring sales. Cramer sanctioned buying AAPL at Monday’s open before the convention gets under way.
On Tuesday, Citigroup and Intel report. Cramer expects Citi to announce monster charges, a huge dividend cut and possible news of an outside investor. The expectations are so low for the now-hated Intel that it could easily rally off the report, Cramer said.
Wednesday brings earnings from JP Morgan and Wells Fargo . JPM will likely get a pass as it did last quarter because people believe in CEO Jamie Dimon, who Cramer called the “Muhammad Ali of CEOs.” Meanwhile, Wells Fargo also reports Thursday. Expect the WFC quarter to be bad like the rest, Cramer said, but remember that it’s a candidate to buy Washington Mutual.
Downey Financial also reports and Cramer thinks it will be awful. But with the mantra that bad news is good news, the one-two punch of Downey and WaMu on Thursday could make it the most encouraging day of the week. Industrial giant Parker Hannifin reports Thursday as well and Cramer would buy it down here down 20 straight points.
Schlumberger rounds out the week on Friday. After disappointing investors last quarter, Cramer thinks the oil titan will be hungry to reestablish its dominance. But an SLB trade will only work, he said, if crude oil is higher a week from now.
Cramer offered this disclaimer at the end of his Game Plan: Earnings season is traditionally a hard time to catch gains because there’s so much confusion in the market. With a market already hard to gauge, Homegamers who don’t understand these trades should do the smart thing and take a pass.
Jim's charitable trust owns Citigroup.
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