Jim Cramer Blog

Here are 7 trading ideas for today. This list comes directly from the TradingMarkets Stock Indicators page and is based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Seabridge Gold (NYSE:SA - News) & Sunpower Corporation (NasdaqGS:SPWR - News). SA's PowerRating (for Traders) is 8, and SPWR's PowerRating (for Traders) is 8.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Noble Corporation (NYSE:NE - News) & SPDRS Select Energy ETF (NYSE:XLE - News). NE's PowerRating (for Traders) is 6, and XLEs PowerRating (for Traders) is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
GFI Group (NasdaqGS:GFIG - News). GFIG's PowerRating (for Traders) is 8.
Stocks Down 10% or More: These are stocks that have lost 10% or more over the past five days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that have lost 10% or more over the past five days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Amazon.com (NasdaqGS:AMZN - News). AMZN's PowerRating (for Traders) is 8.
Bearish
Stocks Up 10% or More: These are stocks that have gained 10% or more over the past five days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that have gained 10% or more over the past five days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
Continental Airlines (NYSE:CAL - News). CAL's PowerRating (for Traders) is 3.

Labels: AMZN, CAL, GFIG, NE, SA, SPWR, Trading Ideas, XLE

On Wednesday, Cramer said, "For everyone who missed out on the 400-point rally yesterday and today, I have one thing to say: It's not too late, you've barely missed a thing." Proof: Cramer said when the Fed realized the extent of its problems back in 1990, it was a great time to get into the market. Since then: Dow Jones up 10,000 points. People shouldn't pay attention to the "negative Nancies" that have been scared out of the market. Cramer says the rate cut has been great for so many stocks. Including: Kohl's (KSS), Target (TGT), as well as the banks. Also: Wachovia (WB), Downey Financial (DSL), and FirstFed Financial (FED). Cramer is still in the middle on homebuilders. He wouldn't touch Lennars (LEN) or KB Homeses (KBH), but wouldn't short them anymore.
AT&T (T): Cramer spent the next segment telling why AT&T is a good buy. It has a good dividend and has "totally reinvented itself as a growth company" by investing in telco companies. AT&T CFO Rick Linder was welcomed to the show and said the telco industry is resurging. Their wireless data, broadband, and video division are all taking off as well. Their acquisition of Apple's iPhone has been largely successful, especially since its price drop to $200.
Mad Mail: writer commented on Cisco's (CSCO) recent acquisition of wireless solutions company Cognio and asked if all WiFi companies are headed down the bandwidth road to the extent that Level 3 Communications (LVLT) will soon experience explosive revenue and profit growth.
Am I Diversified? Cramer's first caller asked if he was diversified with the following five stocks: Apple, Noble (NE), Potash (POT), Research In Motion (RIMM) and Schlumberger (SLB). Cramer pointed out two pairs with Apple and RIMM, and Noble and Schlumberger. Throw out Noble and Apple and add a defense play like Northrop Grumman (NOC) and a financial like Wachovia. Separately, Cramer said he prefers Deere (DE), Monsanto (MON) and Bunge (BG) to Potash.
His second caller named these five picks: Genentech (DNA), Fuel-Tech (FTEK), NightHawk Radiology (NHWK), L-1 Identity Solutions (ID) and US Gold (UXG). Cramer told the caller she had too much of a gambling portfolio with too many speculative stocks like ID, FTEK and UXG. He suggested getting out of those and into less speculative names.

Labels: ATT. T, CSCO, DE, DSL, FED, Jim Cramer, KSS, LEN KBH, LVLT, Mad Money, Mad MOney Recap, MON, NE, NOC, POT, RIMM, TGT, WB

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs Apr 230 Calls (NYSE:GS - News). GS' PowerRating is 4.
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
New Century Financial Corp. Apr 10 Puts (NYSE:NEW - News). NEW's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Atherogenics Apr 7.5 Calls (NasdaqGM:AGIX - News). AGIX's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Chicago Mercantile Exchange Apr 520 Puts (NYSE:CME - News). CME's PowerRating is 5. Google Apr 410 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Noble Corp. NYSE:NE. NE's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Baidu.com (NasdaqGM:BIDU - News). BIDU's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: AGIX, BIDU, CME, GOOG, GS, Hot Options, NE, NEW