July 12th, 2006
Could it be time to start becoming less bearish, even start buying! Why the switch, you ask? Because I’m a “contra-Cramerican” (contrarian, that is). That’s right, just as the market is beginning to resume its fall begun in May, Jim Cramer last night finally jumped on the “sell-into-strength” bandwagon. That either means that the market will truly cave as the summer wears on or, since he’s been wrong so often, the market may be near finding its bottom.
Take, for example, the defensive trades he recommended last night. Specifically, his call to sell (can I say, sell short) Apple (AAPL). Had it been made 6 months ago, at the beginning of the year. As a matter of fact, AAPL has been one of the stocks I have been shorting, off and on, since May.
The stock is down 35% from that January high … and since then, until last night, he promoted the stock. According to Thierry Martin’s unofficial record of Cramer’s recommendations, buy or sell, on radio, Madmoney TV show, Stop Trading segment or Lightening Rounds (search his CramersMadMoney.com), Cramer commented 18 times since mid-April, twice indicated a $100 target price and only once … last night … recommended a sell:
|Date||Where||Buy or Sell||Comment|
Sounds no better than Mary Meeker, Jack Grubman, Henry Blodget and other “super-star” stock analysts on the tech bubble era, doesn’t it? Is it a belated mea culpa, face saving c.y.a. or just self-serving conflict of interest?