“I would cut back on technology here because I don’t think the quarters are going to be strong enough, and while Oracle and Microsoft have been able to rally on some good recent news, the state of play is weaker than we’d like, and this is the most seasonally weak group in the market,” he said.
The exception to the rule, however, is Apple.
Cramer noted that Oracle downplayed the European crisis, while making deals with Swiss and French banks.
Microsoft, with its new “iPad killer” Surface tablet, is throwing its hat in a ring already occupied by Dell, Hewlett-Packard and, of course, Apple, which itself faces a product gap ahead of the release of the iPhone 5.
Intel played up demand from emerging markets and tried to ease concerns about changes in its product lineup.
Google, with its large European exposure, could face stiff headwinds.
So, what’s an investor to do?
“I think the answer is clear,” Cramer said. “You can hold on to tech, but my advice is that if you have gains in these names or any others, you should trim all but Apple. That’s right, if you have profits in tech, it’s time to take them.”
Cramer said he believed the chaos in Europe would only serve to heighten a summer tech sell-off. Sure, Oracle stock climbed after its earnings report, but that was because the company’s results showed that Europe wasn’t that bad.
“That raises the bar too much for me,” he said. “It’s just not worth having as much tech. Remember, nobody ever got hurt taking a profit.”
So why not sell Apple?
Cramer said that the wait for its iPhone 5 means that telecom providers will be selling other companies’ smartphones.
“It’s the most telegraphed gap, or valley in earnings, that I know of,” he said.
But Apple has a lot of potential upside from the iPad, iPhone and possibly even an Apple TV product that might understand voice commands.
“I will say up front that I would immediately junk my TVs and get new models if Siri can talk to them and get them to find and switch to what I want. That’s the holy grail of TV watching, and I want it.
“So when it comes to tech, trim trim trim. Except Apple,” he said. “Take the pain of Apple to get the gain. But for the others, just take the gain now and live less dangerously.”
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