Sell-off is nothing new
If history is any indicator, this morning's slump will follow through with mild losses. Accept the decline, buy the dips and follow the usual suspects for signs of an intraday turnaround.
At least there's nothing new about this morning's sell-off. Portuguese bonds look terrible. The euro is weak, ignoring great German production numbers. Oil is now "swooning."
Well, we have some research to fuel the narrative: Alcoa (AA), the hottest stock in the Dow ($INDU), is downgraded by Citigroup, and Goldman goes positive on General Mills (GIS)!
So it goes.
What's been the follow-through on days like this? Typically we have everything go down, then one of the futures ticks up -- oil because of inventories (announced today); copper, perhaps because of short-covering; or the euro, because Portugal was just a fire drill -- and we settle into a down-1%-or-less day. We basically give up what we have made.
Will today be any different? I have to tell you that I see no reason whatsoever that it should be. The pattern was so established that it failed to play out only a handful of times. Perhaps we get more money into soft goods, a la the GIS upgrade, and out of cyclicals, in keeping with the Alcoa dumping. But that rotation should be short-lived come earnings.
Post continues after video:
How can we spot the intraday turn if there is one? Watch the usual suspects: F5 (FFIV), Apple (AAPL), Deckers (DECK), Salesforce.com (CRM), Chipotle (CMG), Amazon (AMZN) and Netflix (NFLX). Individually they can be wacky, as we saw on the first day of the year with Apple, Amazon and Chipotle and then Tuesday with Netflix. But collectively they predicted, and got you in at, almost every turn of 2010, one reason I'm so keen on following them.
Until these stocks do speak up, I say accept the decline and go with my recipe of dip buying, one that I see is already being scorned on various message boards with a "Hey, Cramer, guess you are hurting now" illogic.
Told you things haven't changed.
At the time of publication, Cramer was long Alcoa and Apple.
Jim Cramer is co-founder and chairman of TheStreet. He contributes daily market commentary for TheStreet's sites and serves as an adviser to the company's CEO.
Follow Cramer's trades for his Charitable Trust.
Related Articles
"if you did not hawk your book"/noroom
Ah, you are ignoring the obvious! Everything STREET and Cramer do is to advertise their products and those of its advertisers. Thats why they spread simple stories out to so many superfluous pages.
MSN charges them a FEE and STREET needs enough sales to make it worthwhile.
Its all about the $$$.
Harrumph
MORE ON MSN MONEY
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
STOCK SCOUTER
StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.
128 | 268 | 471 | 585 | 652 | 595 | 673 | 422 | 262 | 141 |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
LATEST POSTS
DuPont is downgraded to 'sell,' and Pacific Sunwear is upgraded to 'buy.'
FIDELITY VIEWPOINTS
- How to sell covered calls - Fidelity Investments
- Savvy year-end tax moves to consider now - Fidelity Investments
- Seven ways to prepare for tax changes
- Five reasons an annual review is crucial - Fidelity Investments
- Take a look at mid caps now - Fidelity Investments
- State of the sector: Health care - Fidelity Investments
VIDEO ON MSN MONEY
ABOUT
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.