Jim Cramer Blog

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are 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.
Watson Pharmaceuticals (NYSE:WPI - News). WPI's PowerRating (for Traders) is 6.
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.
Alliance Data (NYSE:ADS - News). ADS's 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.
Amerigon (NasdaqGM:ARGN - News). ARGN's PowerRating (for Traders) is 8.
Bearish
5+ Consecutive Up Days: These are stocks that have closed up for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that close up for five or more days have shown negative returns, on average, 1-week later. Historically, these stocks have provided traders with a significant edge.
California Pizza Kitchen (NasdaqGS:CPKI - News). CPKI's PowerRating (for Traders) is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Take Two Interactive Software (NasdaqGS:TTWO - News) & Sappi Limited (NYSE:SPP - News). TTWO's PowerRating (for Traders) is 3, and SPP's PowerRating (for Traders) is 3..
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.
XM Satellite Radio (NasdaqGS:XMSR - News). XMSR's PowerRating (for Traders) is 3.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADS, ARGN, CPKI, Hot Stocks, SPP, TTWO, WPI, XMSR

Bullish Calls:
Yamana Gold (NYSE: AUY): ' I am sticking by AUY as my play for when things go bad. That's what it is. It's basically a first aid kit you've got to take with you everywhere you go.'Total System Services (NYSE: TSS): 'You are in great shape. TSS, I believe, will not be independent a year from now ... I like TSS as a takeover. And, on earnings, it should go to $40 alone.'Celgene (NasdaqGS: CELG): 'The stock's had a nice pullback, which means you should back up the truck. Every time we've had an 8% pullback in CELG, it has been miraculous to buy. I'm saying this time it will be no different.'Sappi Ltd. (NYSE: SPP): ' ... we've got a government that's of, by and for the corporation, trying to keep the ChiComms from flooding us with paper, so this South African company can make a lot of money, and it's working! You stay long SPP!'Volvo AB (Other OTC: VOLVF.PK): You're a genius! That is an unbelievable stock! ... It has a great industrial business. It has a great yield ... even right here at $21 bucks - I would back up the truck!'Freeport McMoran (NYSE: FCX): 'It's also got gold, and it's much more levered to China buying it. Those ChiComms eat copper for breakfast!'
Neutral calls:
ConAgra (NYSE: CAG): 'They have a raw cost problem. All of that stuff is being bid up by ethanol. And so I can't get behind that. CAG, just okay. Candidly, I recommended it right here, and I'm not backing away from it, but the raw costs are out of control.'
Bearish calls:
Electronic Arts (NasdaqGS: ERTS): 'You know what? I'm giving up on this one... I'm putting the 'don't buy' on it. That's a change in plans.'Finisar (NasdaqGS: FNSR): 'No. I liked FNSR ... Their time has passed. They didn't get the big orders.'Washington Group (NYSE: WNG): 'My friend... Bulls make money, bears make money... hogs get slaughtered! You must sell WNG right now!'Southern Copper (NYSE: PCU): 'I like PCU.... I think FCX is better.'Build-a-Bear (NYSE: BBW): ' if I go and recommend it on this show, that they will then have a shortfall, because they are wildly inconsistent. They are too dangerous for this guy ... If that stock were to go back to $25.00, I would pull the trigger.'
Published By SeekingAlpha

Labels: AUY, BBW, CAG, CELG, ERTS, FCX, FNSR, Jim Cramer, Lightning Round, Mad Money, PCU, SPP, TSS, WNG

Annaly Capital Management, Inc. (NYSE: NLY - News)
The "tireless Cassandra" of the sub-prime crisis is now the "last man standing," said Cramer, praising Mike Farrell, CEO of NLY. Farrell commented on Mad Money that he saw the crisis on the horizon and pulled back from the residential mortgage business. As a result, NLY has survived where others have fallen. Concerning its $3 rise, Cramer said, "you ain't seen nothing yet" and predicted the stock would double. While NLY is involved in risk, it carries the more benign interest rate risk rather then the hazardous credit risk which has destroyed so many lenders. Since the media fails to make the distinction between the two kinds of risk, it has missed out on reporting on NLY's success, according to Cramer.

Paper Trail: Sappi (NYSE: SPP - News)
Cramer recommends Sappi as a way to play the antisubsidy and antidumping tariffs the U.S has imposed on glossy, coated paper from China. SPP has 10% global market share, and coated paper accounts for 70% of its sales. The company was hurt by the Chinese, but the new legislation should mean a short term increase for the stock, perhaps into the $20s. However, Cramer sees SPP as a trade rather than investment, because he ultimately believes the Chinese will win the paper war.Sell Block: Vonage (NYSE: VG - News), Johnson & Johnson (NYSE: JNJ - News), Friedman Billings Ramsey Group (NYSE: FBR - News)
Cramer has one more reason to hate Vonage; while at first glance it may seem to be a good thing that CEO Mike Snyder is leaving, he is being replaced by Jeffrey Citron, who in 2003 was banned from the securities industry and in Cramer's opinion, should not be a CEO of a publicly traded company. On the other hand, a company Cramer liked but has disappointed him is JNJ, over which he lamented "there are very few blue chips left." He is unhappy with the company's fundamentals, its "anemic" pipeline, the fact its big money maker, Risperdal, is going generic, and that its latest product launch has gone "pathetically." Cramer says FBR is "trying to turn lead into gold" and should be avoided; "It's got some really heinous sub-prime exposure," he adds.
CEO Interview: Marc Benioff, Salesforce.com (NYSE: CRM - News)
Marc Benioff said his company is "trying to recreate the software industry by delivering a set of Internet services that replace traditional enterprise software." He noted major contracts CRM has signed with Merrill Lynch, Dell and Cisco and commented his company was preferred over Oracle and Microsoft. When Cramer suggested other companies have achieved the same thing and failed, Marc Benioff replied that the openess to change the company's technology and business models would win CRM more high-profile clients. Cramer declared he was neutral on the stock and suggested viewers decide for themselves.
Published By SeekingAlpha

Labels: CRM, FBR, Jim Cramer, JNJ, Mad Money, NLY, SPP, VG