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.

Dec 5, 2011 12:19PM

last monday shyster said"only fools buy up 300"

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



Dec 5, 2011 3:00PM

Ah Jim:


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

Dec 5, 2011 12:22PM
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
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
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
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

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

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

So Jimmy what is your point????????


Dec 5, 2011 4:37PM
Jimmy ,is that random musings? How many security people do you need at a book singing?
Dec 6, 2011 10:54AM

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
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.
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
100 character limit
Are you sure you want to delete this comment?


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. 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 Morningstar Inc.


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.

123 rated 1
266 rated 2
485 rated 3
660 rated 4
586 rated 5
652 rated 6
640 rated 7
504 rated 8
289 rated 9
159 rated 10

Top Picks

TAT&T Inc9



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.