Jim Cramer's Best Blogs
When you have days when stocks get hammered on nothing much at all, you know that the market remains on very unstable footing, even as you have to admit that the overall tape is pretty resilient. How tempting it would have been at my old hedge fund to sweep in and buy some July 90 calls for $13, and then if the stock roars back, put out some common against it in case the rumors are true. So juicy. Such a terrific trade -- and don't worry, I have a feeling that tomorrow it will be there for the asking.
What's really going on? I think I detected a sell-the-winners strategy being put into place, perhaps to set up for a rotation into the losers. I am sure someone thinks the valuations are stretched, and someone else says they've had a good run.
Here's what I say: Terry Lundgren told you that the reason why retail is doing so well is the tailwind of gasoline. The experience of paying $100 and now only having to pay $90, while not thrilling compared with paying $80, might put some spring in your step. Hey, he said it, not me.
I don't want to sell these stocks. I think they remain great places to be, particularly Macy's, as it has domestic security. But the action in these retailers and apparel plays was so nasty today, including the shoot-the-lights-out Michael Kors(KORS) , that I think the selling is not done, and your first buy may not be your best buy.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, owns shares of MCD.
Europe May Need Bitter Medicine
Posted at 6:27 p.m. EDT on Thursday, June 14
Europe is so pathetic and hate-able. They can't do anything right at all. What was the point of leaking to heaven knows who that there will be liquidity provided if the antiausterity mob wins in Greece this weekend?
We know they won't have enough liquidity. We know that yields for Spanish and Italy bonds will soar. We know nothing they do ever matters. So what's the point of letting people know that they are at the ready?
At the ready for what?
While I am focused on the idea that we need to protect ourselves with domestic security, it is worth considering what stops Europe from issuing silly statements and instead gets them to do something big that hurts a lot of people but lets the nations continue to function.