Tech can break the linkage logjam
The great numbers we're getting trump the oil/gold/dollar complex.
By Jim Cramer, TheStreet
Is Wal-Mart (WMT) the flip side of Coach (COH) and Whole Foods (WFMI)? Is it the place people aren't shopping because they feel better? Or are all the new execution gains now behind them, and it no longer has the momentum?
Or maybe it's just a total irrelevance because of the oil/gold/dollar conundrum afflicting us once again, this time with an added advantage that 100 million shoppers must feel weak, confirming gold and oil weakness.
Either way, I am suspicious of the downside because of the terrific numbers we got from Hewlett-Packard (HPQ) and Applied Materials (AMAT) and my conviction that we are still early in the semiconductor golden age.
When you have that many sales from H-P, not at all crimped by the terrific recent number from competitor Lexmark on the printer side, you know demand is red-hot for the drives, the microprocessors, the DRAMs (maybe Micron (MU) is down enough?) the NANDs -- maybe that Morgan Stanley upgrade was right yesterday, and that can carry us. Oh, and do you mind if we pay no attention to the man behind the curtain, Dell (DELL), which reports tonight, a former darling that the media puts on par with H-P?
I think that tech is the trump card to break today's logjam between the futures complex and the fundies. I am taking tech over the dollar/gold/oil complex and buying. I would not hesitate to pick up last night's winners, which are below where they should be because of the macro absurdity. And Wal-Mart does not change my mind on this judgment.
At the time of publication, Cramer had no positions in the stocks mentioned.
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The company is lowering its soda machine projections for the second half of the year, however.
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