The seasonal tech trade is back

The sector is getting a lift as Thailand comes back online, China gets ready to spend and Google leads the way.

By Jim Cramer Dec 5, 2011 10:29AM

the streetThe flood waters recede, and tech springs to life. That's what it looks like when we realize that the "seasonal" trade, the annual move up in tech stocks, was clearly stunted by all the capacity that was taken out by the flooding in Thailand.

 

Remarkably, now that the country is coming back online, we are seeing supply constraints that are allowing the drive makers to get some gross margins. At the same time, people are getting excited about a return to spending from China, a very big deal, one that makes for good chatter from Intel (INTC), SanDisk (SNDK) and, one of my favorites, Nvidia (NVDA).

 

You combine that with the possibility of strong sales from Apple (AAPL), as we heard Thursday from JPMorgan, a new delivery service from Google (GOOG) and terrific chatter from Amazon (AMZN) for the holiday season, and you can see how the tech seasonal trade has gotten back in line the way the Thai facilities are coming back online.

 

Action Alerts PLUS owns two beaten-down tech names, Broadcom (BRCM) and EMC (EMC), which may be ready to roll because cellphones and big data are big themes. But the hottest stock of all is that of Google, which my friend John Roque, a terrific technician, is saying could be in total breakout mode.

 

Last week we saw the first tech leadership. Now we are seeing the soldiers follow. It's about time.

 

Random musings: I will be speaking at the 92nd Street Y in New York at 8 p.m. Monday and signing books afterward, if you care to attend!

 

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, BRCM and EMC.

 

Related Articles:

 

jim cramer

Jim Cramer is a co-founder of TheStreet and contributes daily market commentary to the financial news network's sites. Follow his trades for his charitable trust.

13Comments
Dec 5, 2011 12:19PM
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last monday shyster said"only fools buy up 300"

now up 800+ and nearing a short term top he recommends the seasonal tech rally

 

BEWARE THE SHYSTER

Dec 5, 2011 3:00PM
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Ah Jim:

 

What happened to your call last week about "the sky is falling" and to abandon the market?

Dec 5, 2011 12:22PM
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cnbc selectively reports wire stories that support its biased agenda. too many wallstreet shills and political hacks (kiernan aka the clown,sorkin,cabreera,krudlow). keep the rally going and tuneout cnbc (can not buy credibility). Buy American and support our Troops.
Dec 5, 2011 1:23PM
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socialized wall street is just one big joke ! They act like they are a free enterprise system ? LOL Far from it ! Where is all my tax money from all your bailouts? <No pay back here! The Feds need to do a stress test on all of wall street ! Any US BIG BANKS FAIL they should go the way of of bankruptcy or just go away! There are way too many banks ! They all get FREE MONEY from the feds! They are not lending at all ! Small business cannot get a loan . So seeing that they got all their money from all the foreclosed homes they did because the US tax payer insured them ! < Another welfare bailout to wall street from the US tax payer! DIME . Where is that free enterprise? So i guess in the end they are just one big house of cards about to fall ! And this time no government bailout for you !!!!
Dec 5, 2011 3:32PM
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Question du jour: why is Jon Corzine still at large? In what fabulous Manhattan restaurants has he been enjoying plates of cockscombs and lobster with sauce hydromel and cinghiale ai frutti di bosco, while less well-connected citizens of this degenerate republic have to order their suppers from the dumpster in the WalMart parking lot where they have been living lately.     Is there still an Attorney General in this country? Will somebody please follow Eric Holder down a hallway and see if he leaves a trail of sawdust on the floor. Or did congress just retract all the fraud statutes by stealth in the same way that the Federal Reserve handed out $7.7 trillion in bailouts back in 2008 (much more than the generally accepted figure of the $800 billion TARP) without anyone finding out until three years later when some Bloomberg reporters rooted the numbers out of a Freedom of Information Act (FOIA) filing.
Dec 5, 2011 2:22PM
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This is the first Jim Cramer article I've ever read that wasn't complete stupidity.  Unfortunately, the hot stocks he refers to were obvious good buys to everyone else months or years ago.  A ten year old could tell you that they are good stocks now.
Dec 5, 2011 4:36PM
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the screams of end stage capitalism grow louder and louder as the cramers,corzines,

and their ilk grow richer off the society

 

the masses are constantly fooled by preachers like cramer

Dec 5, 2011 4:02PM
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Ah Jim:

 

What happened to your call last week about "the sky is falling" and to abandon the market?

-------------

Wait until after December, an historically strong month in the market, to ask that question.  One week of strong performance isn't really indicative of longer term market trends.

Dec 5, 2011 1:04PM
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So Jimmy what is your point????????

 

Dec 5, 2011 4:37PM
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Jimmy ,is that random musings? How many security people do you need at a book singing?
Dec 6, 2011 10:54AM
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Cramer is a flip flopper. Get in get out; get in get out. I could flip a coin for the same results.

He gets you to buy when his fund is getting out ! His admits on tv his wife saved him from bankruptcy 3x.

He lost thousands for people, BAC, NYX, LVLT, NFLX etc etc. BOO HOOO Cramer !

Keep buying his books, bobble heads, picks sheets and watch his show.

 'He gets rich off of your whether his is right or wrong'.    Sick 
Dec 5, 2011 2:57PM
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mf global is the poster child for cnbc shills who call for less regulation to stimulate job creation. larry (drugster) kudlow says higher umemployment means the country is creating jobs and is a good thing. cnbc thinks we buy this crap. tune out the political hacks and shills at cnbc. Buy American and support our Troops.
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