3 wrongs don't make big gains right
Chartists, analysts and the public missed the boat on some key earnings. How else can we explain these market moves?
Maybe the holders know nothing. Maybe they are spooked at every turn. Maybe they are all micro guys turned macro. Maybe the research out there is so bad that they make decisions based on faulty information.
How else can we explain these post-market moves on OK earnings?
The first, IBM (IBM), is incredible. I heard endless chatter that the quarter would be missed because the revenue would be weak. At the same time there was a relentless downbeat tone about the chart. The chart! Sure enough, sales fell 3%, but the number is $15.10 now, not $15, and when you have a stock that has cratered like IBM on what was supposed to be an earnings miss, revenue being the incomplete way of looking at this software and consulting company, you get the kind of ramp we're seeing now.
How about eBay (EBAY)? For weeks some research outfit I will not deign to even mention had been peddling a story about really soft merchandise sales. Every time the stock would lift, I heard the rumor and it always seemed so rigorous. It was all phony. Although the charitable trust is in it for PayPal, merchandise sales were fabulous. I am blaming a bogus call out of a house that needs commission business for this one.
Then there is Mellanox Technologies (MLNX). This is a tech company that fills a hole in big data/cloud equipment that has been ceded to it by Intel (INTC), its companion in the data center through Intel's powerful Romley chip. I featured this one on Mad Money recently, suggesting that it could be the home run again for the second half of the year after blowing away numbers the previous quarter.
Well, guess what. It did it again, and I have to tell you that I was aghast when the public, our viewership at Mad Money, vastly underestimated this company's ability to repeat and instead voted almost overwhelmingly to anoint Arena Pharma (ARNA) the second-half winner.
Wrong!
So, chartists wrong, analysts wrong, public wrong.
No wonder we saw such huge gains!
Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for Action Alerts PLUS, which Cramer co-manages as a charitable trust and is long EBAY.
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man...........suddenly i received numerous replies to my comments..........seems some craMARcuns don't agree with my postings.........some even question my facts.....
anyone who reads my comments knows that my purpose is to warn people of the cramer scam....
as for my facts ......well.....i always say to look them up and not take my word for it....
the fact is that cramer owns so many stocks he is no more than a mutual fund..........and the facts
are that 80% of mutual funds can't beat the market..........including cramer........they get some right
and some wrong...............THE DIFFERENCE IS THAT MUTUAL FUNDS DON'T SELL ADVICE
TO THE UNWARY AND THEY DON'T MAKE PUMP AND DUMP GAP DOWN PICKS SUCH AS:
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2.nyx,not just another pick but STOCK OF THE YEAR IN 2010 AT 96 NOW 30
3.gold ,not just another pick but MUST HAVE AT 1900 NOW UNDER 1600
THESE ARE HIS BEST.............................DISASTROUS
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