"Did Cramer tell you to load up on quality techs now before Greenspan lowers rates all through the year?"
One would think (and perhaps he's changed his mind), but upon the FED's first cut here's what he had to say:
"I like to go with what has
worked in the past: the financials, the retailers, the
capital goods makers and the consumer cyclicals
[Merrill Lynch (MER:NYSE - news)/Chase
(CMB:NYSE - news), Wal-Mart (WMT:NYSE -
news)/Lowe's (LOW:NYSE - news), Cat
(CAT:NYSE - news)/Deere (DE:NYSE - news) and
Ford (F:NYSE - news)/Whirlpool (WHR:NYSE -
news)]."
thestreet.com
No techs whatsoever. These managers got so fat shorting technology that they hate to see that gravy train come to an end. But, like it or not, it has ended. The market fundamentally changed upon the rate cut...and those guys got caught short tech and long -- well -- stuff no one wants. No doubt about it in my mind, they absolutely DO want in tech...and probably feel frustrated as this last rally completely left them behind. Accordingly, they are short tech right now. VERY short. Until they cover and buy shares for themselves, though, they will continue talking about these last few weeks as a bear market rally. But the volume seems to disagree. "Don't get suckered into tech," Cramer advises. Let's test the wisdom of that advise next January. |
