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Wednesday, July 19, 2006

Cramer's MAD MONEY (July 19, 2006)

Cramer said today was a fakeout for the chartists rather than based on what Bernanke said, and said it was an oversold condition. He said not to get too defensive and stay diversified.

He said to sell strength and buy weakness because of where the business cycle is.

He was comparing his holding United Tech (UTX) as a positive manufacturer and 3M (MMM) as a bad one. His checklist was 1) leveraged to the BRIC nations, 2) leveraged to bull markets that are immune from central bank actions, 3) has to be saying they have a good future by raising guidance, and 4) needs to be in share buyback mode.

In call-in questions, he said Caterpillar (CAT) is between these and risk/reward is slightly positive. Cramer also said Boeing (BA) is good because they will start raising prices and Temple Inland (TIN) is only OK.

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