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.
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.
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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.
Follow Cramer's trades for his Charitable Trust.
"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 $$$.
Jim, your advice this morning would be so much more laudable if you did not hawk your book with the
"see my recipe for buying on the dips", just be the analyst that you are indubidably capable of being and let that sell your books. Now back to our sponsors...
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