Follow the Intel Bellwether
By James J. Cramer
Originally posted at 11:52 AM ET 10/25/00 on RealMoney.com
Once again Intel (INTC:Nasdaq - news) is The Tell. It is the stock that shows you the direction. It is the new market, the guided-down market, that I am following closely.
Remember how things work. Once expectations get ratcheted down, you get real interest because people want to own stocks that can beat guidance, even if it is beaten-down guidance.
So, Part I, Intel blows up and reduces guidance. Part II, Intel beats guidance. Part III, Gateway (GTW:NYSE - news) and Compaq (CPQ:NYSE - news) say demand is fine, as they did last week and last night. Part IV a base gets built. Part V. Stock works its way higher, nothing dramatic and nothing big, but higher.
What else can have this process? I am eying Micron (MU:NYSE - news) as one possible candidate. Here again, expectations have been ratcheted down, people have left the stock, nobody wants to touch it.
That gets me interested.
Why havenýt we pulled the trigger? Beats me. I am sure itching to do it. Gotta do a little more work but would love to hear from you on this one.
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