Jim Cramer Blog

The show started with Erin Burnett discussing the housing market as the hurricane season approaches. She then spoke with Daniel Mudd, Pres. & CEO of Fannie Mae (FNM)- the top source of mortgage funding. U.S. sub-prime markets are not operating well, and Mudd does not predict an end soon. He discussed their $417,000 limit and possible regulation changes. Some people in sub-prime mortgages could get out. Mudd says we need to minimize foreclosures and maximize transparencies in lending. They borrow from the government and are exempt from certain taxes. FNM provides liquidity by buying and repackaging mortgages for sale. Kenneth Heebmer of CGM capital management says housing weakness expected to continue, and is impacting consumer expenditures. Thinks home prices will drop to 50% of 2005 prices, doesn't think that it will evolve into recession. Housing sector weakness will be a continuing trend. Charlie Rangel was next on the show, discussing expanding the tax base and lowering the rate. Chris Hoene was on to discuss property taxes. 29% of cities have increased property taxes, mainly due to the troubled housing market. Darren Rovell discussed the high profile sports magazine SI signing with Dan Patrick, who worked at ESPN for 18 years. SI.com accounted for 15-20% of SI's total revenues. Crude oil closed at record high at 89.55.
Faber report: Discussed the pressure facing newspapers. Declining readers result in a decline in advertising. Craig Moffett was on to discuss Telecom in the U.S. AT&T is investing in their strengths, while Verizon invests in the weaker market. Likes what AT&T is doing better. He predicts slow down in market revenues in next 12-16 months due to saturation. Google is working on a $30 million space tour program.
Cramer's stop trading: Jim Cramer is in Georgia tech today. Says PNC, STI doing good. JP Morgan has not done great, just hasn't done as bad as others.

Labels: CNBC, Erin Burnett, Faber report, FNM, Jim Cramer, PNC, SI, STI, Street Signs

Here are 7 options to watch for today.
Most Under-Priced Calls: These are the most under priced calls of all stocks in our database. This stock comes from today's list and is among the most under-priced individual calls.

NYMEX Holdings Dec 150 Calls (NYSE:NMX - News). NMX's PowerRating (for Traders) is 5.
Most Under-Priced Puts: These are the most under priced puts of all stocks in our database. This stock comes from today's list and is among the most under-priced individual puts.
Google Dec 600 Puts (NasdaqGS:GOOG - News). GOOG's PowerRating (for Traders) is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. This stock comes from today's list and is among the most overpriced individual calls.
Research in Motion Dec 145 Calls (NasdaqGS:RIMM - News). RIMM's PowerRating (for Traders) is 7.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. This stock comes from today's list and is among the most overpriced individual puts.
CME Group Nov 560 Puts (NYSE:CME - News). CME's PowerRating (for Traders) is 6.
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.
Weyerhaeuser (NYSE:WY - News). WY's PowerRating (for Traders) 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.
PNC Financial Services (NYSE:PNC - News). PNC's PowerRating (for Traders) is 5.
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.
Constellation Energy Group (NYSE:CEG - News). CEG's PowerRating (for Traders) is 6.

Published By TradingMarkets.com

Labels: CEG, CME, GOOG, NMX, PNC, RIMM, stock options, WY

Cramer said banks such as PNC (PNC) are trading at premium to big names such as Citi (C) and Bank of America (BAC) in spite of the regionals' significant exposure to possible lending issues. Cramer said he believes lots of regionals have problems similar to the one revealed late Friday by M&T (MTB).
Cramer is also "concerned" about the so-called Alt-A lenders, the companies that made loans to homebuyers with better-than-subprime credit ratings but without full documentation. He said the degree to which loans were made without documentation is a "big black box" that keeps investors from knowing "who a good lender is." He conceded that some companies like IndyMac (NDE) are "seasoned players" who should know better than to chase nonpaying customers, but he stressed that lenders need to "open things up kimonowise" for shareholders to judge for themselves.
Cramer, stipulating that he "loves" Countrywide (CFC) chief Angelo Mozilo, suggested Mozilo cut back on the TV appearances, reasoning that Countrywide stock gets hit every time Mozilo is on.
Published by thestreet.com

Labels: BAC, C, CFC, Jim Cramer, MTB, NDE, PNC, Stop Trading

Stocks Ready to Surge: These are the stocks that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals.
PNC Financial Services (NYSE:PNC - News). PNC's PowerRating is 5.
Low-Priced Stocks Ready to Surge: These are the stocks under $10/share that today made new 10-day lows that are still in an uptrend as they are trading above their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term upside reversals. Please note: All stocks carry risk and low-priced stocks usually come with even more risk. Always use caution.
Credence Systems (NASDAQ:CMOS - News). CMOS's PowerRating is 7.
Pullbacks from Highs: Most successful momentum-based traders and money managers like to buy strong stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 30 (in weak or choppy markets there will be fewer) of the strongest stocks that have pulled back from recent highs. These stocks should be considered potential candidates to resume their longer-term up trends.
Rostelecom Telecommunications (NYSE:ROS - News). ROS's PowerRating is 6.
Long Windows Candidates: These are stocks which are in a strong uptrend, as determined by a proprietary trend filter and whose current bar has its high below the 4-day moving average. Historically, these stock on average have had a larger than normal short-term upside reversals. In order to qualify as a "Trading Window" candidate, we must have a 10-period ADX reading of 30 or higher and a +DI reading above the -DI reading. Or we must have a 14-period +DI of 30 or higher (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its high of the day below the 4-period moving average.
Walgreen (NYSE:WAG - News). WAG's PowerRating is 6.
Stocks Ready to Drop: These are the stocks that today made new 10-day highs that are still in an downtrend as they are trading below their 200-day moving average. They are sorted in rank according to how over-extended they are vs. their 10-day moving average. For example, the top ranked stock is trading the furthest distance from its 10-day moving average on a percentage basis. Historically, these stocks on average have had larger than normal short-term downside reversals.
Boston Scientific (NYSE:BSX - News). BSX's PowerRating is 4.
Pullbacks from Lows: Most successful momentum-based traders and money managers like to sell weak stocks after they pull back. TradingMarkets.com uses a proprietary mathematical model to identify up to 20 (in strong or choppy markets there will be fewer) weak stocks that have pulled back from recent lows. These stocks should be considered potential candidates to resume their longer-term downtrends.
Amylin Pharmaceuticals (NASDAQ:AMLN - News). AMLN's PowerRating is 3.
Short Windows Candidates: These are stocks which are in a strong downtrend, as determined by a proprietary trend filter and whose current bar has its low above the 4-day moving average. Historically, these stock on average have had a larger than normal short-term downside reversals. In order to qualify as a "Trading Window" candidate, the 10-period ADX must be 30 or higher and the -DI must be greater than the +DI. Or we must have a 14-period -DI reading of above 30 (with no ADX reading required). "Single Windows" are the most common type of Windows. They are simply a single bar which has its low of the day above the 4-period moving average.
Apple (NASDAQ:AAPL - News). AAPL's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net
Published by TradingMarkets Research

Labels: AAPL, AMLN, BSX, CMOS, PNC, ROS, WAG