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.
Mastercard (NYSE:MA - News) & Brasil Telecom (NYSE:BTM - News). MA's PowerRating (for Traders) is 9, and BTM'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.
Suncor Energy (NYSE:SU - News). SU's PowerRating (for Traders) is 7.
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.
Wellpoint (NYSE:WLP - News). WLP's PowerRating (for Traders) is 6.
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.
JA Solar Holdings (NasdaqGM:JASO - News). JASO's PowerRating (for Traders) is 6.
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.
Liberty Global (NasdaqGS:LBTYA - News). LBTYA's PowerRatings (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.
D.R. Horton (NYSE:DHI - News). DHI's PowerRating (for Traders) is 4.
Published By TradingMarkets.com

Labels: BTM, DHI, JASO, LBTYA, MA, SU, Trading Ideas, WLP

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.
F5 Networks (NasdaqGS:FFIV). FFIV's PowerRating 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.
Kenneth Cole Productions (NYSE:KCP) & UAL Corporation (NasdaqGS:UAUA). KCP's PowerRating is 7, and UAUA's PowerRating is 8.
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.
WellPoint (NYSE:WLP) . WLP's PowerRating is 6.
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. Historically, these stocks have provided traders with a significant edge.
Kraft Foods (NYSE:KFT). KFT's PowerRating is 4.
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.
TD Ameritrade (NasdaqGS:AMTD). AMTD's PowerRating is 4.
2-Period RSI Above 98: These are stocks that have a 2-period RSI reading above 98 and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving with a 2-period RSI reading above 98 have shown negative returns, on average, 1-day and 1-week later. Historically, these stocks have provided traders with a significant edge.
Crosstex Energy (NasdaqGS:XTXI). XTXI's PowerRating is 3.
PowerRatings are courtesy of PowerRatings.net

Labels: AMTD, FFIV, Hot Stocks, KCP, KFT, UAUA, WLP, XTXI

Bullish calls:
Consolidated Edison (NYSE: ED - News): 'If you're going to go that route, I'd rather see you do ED.'WellPoint (NYSE: WLP - News)Celgene (NasdaqGS: CELG)Gilead Sciences (NasdaqGS: GILD)Genzyme (NasdaqGS: GENZ)Abbott Labs (NYSE: ABT - News): 'ABT has accelerated growth... because they got the best part of the Guidant deal... because they've got a couple of drugs that I think are still expanding... 'Marshall & Ilsley (NYSE: MI - News): 'I like what they did yesterday, very much... It split off its processing business ... MI is committed to be able to bring out value, even at a time when a lot of regional banks are not to be owned. I salute that management for being probably the only company in that whole industry that I think recognizes that you've got to do more than just play the yield curve, because they haven't done well. That's a good stock.'Dendreon (NasdaqGM: DNDN): 'I think DNDN has now had a major move ... I don't think it's done ... That is a very speculative stock though. It is not for those who want to buy it as a drug company ... Which is why I have not gone out with it on my show.'Starwood Hotels (NYSE: HOT - News): 'Steve Hayer must be a guy that nobody could work with, because, boy, he is an unbelievable turnaround guy... They just left him in the dust. The rumor is that they're going to be for sale. The stock could go to $90 if it's for sale ... I want to own HOT... I think that's a great selection.'
Bearish calls:
DTE Energy (NYSE: DTE - News): 'You're too conservative ... I want more growth than that stock can give you.'Eli Lilly (NYSE: LLY - News): 'This is a tough, tough, tough call, because LLY is very well-run, and it's done unbelievable work in the mental health business. The problem with LLY - and this is a problem I see with much of big pharma - it does not have the growth that I want ... I salute the management, but I don't want to buy the company.'MedImmune (NasdaqGS: MEDI): 'I think they're misguided. I do believe that this company should be sold to other people who can do a better job. They have great drugs. They have not succeeded in marketing them.'
Published by SeekingAlpha

Labels: ABT, DTE, ED, HOT, Jim Cramer, Lightning Round, LLY, Mad Money, MEDI, MI, WLP

Ethanol producers and health care service providers are among the potential corporate beneficiaries of policies proposed by President Bush, while domestic automakers and oil companies could get slightly stung.
The winners and losers will be more apparent in the months ahead, as the Democrat-controlled Congress responds to the president's State of the Union speech, though economists said they expect few drastic changes in Washington between now and the 2008 election. In this scenario, the status quo prevails -- a trend Wall Street tends to prefer.
"The business community is quite skeptical that much, if anything, will be produced out of the Congress in the run-up to the 2008 presidential election year," said Allen Sinai, chief global economist at Decision Economics Inc.
Sinai added that Bush's proposals on energy and health care, including a call for a tax deduction of $7,500 for individuals and $15,000 for families regardless of whether they buy their own health insurance or receive medical coverage at work, were not overly ambitious.
But Archer-Daniels-Midland Co., along with US BioEnergy Corp., VeraSun Energy Corp. and other ethanol producers nevertheless stand to benefit from Bush's call to raise consumption targets for ethanol and other alternative fuels to 35 billion gallons by 2017. More than 5 billion gallons were produced in the U.S. in 2006. The long-term technological challenge, experts say, will be finding inexpensive ways to use feedstocks other than corn to meet the higher targets.
Some ethanol stocks were down in pre-market activity Wednesday. Archer-Daniels-Midland dipped 53 cents to $32.10, after adding 81 cents to close at $32.63 on Tuesday, and Pacific Ethanol slid 49 cents, or 2.8 percent, to $17.36 after adding $1.03 to close at $17.85 Tuesday.
Traditional energy companies will have their "antennae up" to monitor the progress of Bush's alternative energy proposals, Sinai said.
Automakers said they were open to the president's goals of increasing fuel economy standards.
The proposal could benefit Japanese automakers such as Toyota Motor Corp. and Honda Motor Co., which have higher fleetwide fuel economy levels than domestic manufacturers. The proposal also includes a system of trading or "banking" credits to meet new standards, which could lead to Detroit's automakers buying fuel credits from Toyota and Honda.
But GM and Ford Motor Co. have pledged to build two million flexible-fuel vehicles by 2010, so they too could benefit by an influx of ethanol and other renewable fuels. GM said it wanted to ensure, however, "that any fuel economy increases are technically achievable and do not compromise safety, performance, or limit consumer choice."
Energy analysts said the call for a sharp escalation in the use of ethanol will have little immediate impact on major oil companies, such as Irving, Texas-based Exxon Mobil Corp. and San Ramon, Calif.-based Chevron Corp., primarily because it'll be used as a partial substitute and not a replacement for gasoline.
In a research note before the speech, Citigroup analyst Doug Leggate called Bush's plan to cut gasoline consumption by 20 percent by 2017 "a huge target, and one where a reality check may be necessary to determine if this is really achievable."
The health care taxation plan is the most appealing to the private sector, analysts said. Specifically, the second part of the provision that would curb health care spending by taxing any expenses over the $7,500 and $15,000 marks, and could drive many Americans to the individual-oriented plans offered by UnitedHealth Group Inc., Wellpoint Inc. and Aetna Inc.
WellPoint and Aetna slid in pre-market trading. WellPoint dipped 88 cents to $76.15 after adding 22 cents to end at $77.03 on Tuesday and Aetna dipped 18 cents to $42 the morning after it closed up 39 cents at $42.18.
The health proposal also would encourage middle- to lower-income individuals to opt for hospital care instead of avoiding visits that formerly would have required out-of-pocket expenses, said Tom Ochsenschlager, vice president of taxation for the American Institute of Certified Public Accountants.
Employers, including automakers, would welcome the plan since benefit costs, not wages, continue to hinder their bottom lines, said Brian Bethune, U.S. economist at Global Insight in Lexington, Mass.
That's good news for hospital operators like Triad Hospitals Inc. and Health Management Associates Inc., and General Motors Corp., the nation's largest private provider of health care.
And the potential health care benefits should outweigh the hit domestic automakers would take if Bush is successful in raising fuel economy standards for passenger cars, economists said.
The president devoted roughly 20 minutes of his speech to the global war on terror, with seven of those minutes spent on Iraq.
The defense industry outlook is dictated primarily by policies in Iraq and Bush's recent call to increase U.S. troops there by 21,500 elicited fierce opposition on Capitol Hill, Nomura's Resler said.
But since Bush's troop announcement on Jan. 10, the stock prices of defense contractors like Hartford, Conn.-based United Technologies, Los Angeles-based Northrop Grumman Corp. and Bethesda, Md.-based Lockheed Martin Corp., are up.
The Defense Department is expected to submit its fiscal year 2008 budget request to Congress for approval next month with initial estimates suggesting it could reach more than $600 billion, which could further bolster defense companies' shares.
AP Business Writers John Porretto in Houston, and Donna Borak, Matthew Perrone and Ken Thomas in Washington, contributed to this report.

Labels: ADM, AET, CVX, HMA, HMC, LMT, PEIX, TM, TRI, UNH, USBE, UTX, VSE, WLP, XGM, XOM

WellPoint (NYSE: WLP - News), MedcoHealth (NYSE: MHS - News), Quest Diagnostics (NYSE: DGX - News), Schering-Plough (NYSE: SGP - News), Johnson & Johnson (NYSE: JNJ - News), Pfizer (NYSE: PFE - News) Merck (NYSE: MRK - News), Novartis (NYSE: NVS - News), GlaxoSmithKline (NYSE: GSK - News) - Cramer notes that drug stocks are having a post-election rally and are screaming "buy, buy, buy!" with the exception of Pfizer, a "challenged company" which has fired a lot of people to "create an upside surprise by lowering its bar." Cramer likes MHS, DGX, SGP, JNJ, MRK, NVS, GSK and adds that WLP is best of breed.

Sacked Citi: Citigroup (NYSE: C - News) - Cramer comments that since CEO Chuck Prince protected Citibank against New York Attorney General Eliot Spitzer, shareholders have been "brain dead and happy" and fail to realize that there needs to be a change in leadership. Concerning suggestions that Citibank should be broken up, Cramer said, "I believe that breakup calls make sense, but not until you have someone at the helm who can make a difference." Cramer suggested selling Citibank.
Housing, General Motors (NYSE: GM - News), Ford (NYSE: F - News) and Exxon (NYSE: XOM - News) - Cramer notes that in housing, sellers are "desperate", are cutting prices, and buyers should take advantage of the current inventory excess. "There is not an industry in the world that can finance nonproducing inventory except oil, which is why I like that business so much," Cramer said. "Its inventory goes up in price as it sits because of a developing multiyear storage." Homebuilding is a cyclical rather than a secular grower, explains Cramer adding that they "downgraded the cyclicals at the bottom of the cycle because the price-to-earnings ratios soared." Cramer notes the pullback of the auto and housing sectors and predicts a "big decline" in the economy, adding that GM and Ford are laying off workers. Cramer does see some momentum in energy with Exxon as the "annointed stock."
Bullish calls:
Las Vegas Sands (NYSE: LVS - News) and MasterCard (NYSE: MA - News): Although these stocks are "beaten down" Cramer declares that they are going up and would pull the trigger if they go down five or six points because "even the best ones need to take a breather."Saks (NYSE: SKS - News) and Nordstrom (NYSE: JWN - News): Saks is "in the midst of a major turnaround" and should join ranks with JWN.Bank of America (NYSE: BAC - News): This company knows how to treat its shareholders, according to Cramer.Cisco (NASDAQ: CSCO - News): Cramer says he is a "Cisco guy" when it comes to telecom.AK Steel (NYSE: AKS - News): Cramer likes this company but prefers Reliance Steel (NYSE: RS - News).
Neutral/Bearish calls:
Continental (NYSE: CAL - News): Cramer likes this airline, but since the sector has had a "tremendous" run, he would take profit now.JPMorgan (NYSE: JPM - News): "Fine," says Cramer, but not a "must own."RF Micro Devices (NASDAQ: RFMD - News)Coldwater Creek (NASDAQ: CWTR - News): When a caller complained about being in the "house of pain" with Coldwater Creek, Cramer replied, "That's because it's a huge mistake."

Labels: AKS, BAC, C, CSCO, DGX, GM, GSK, Jim Cramer, JNJ, JWN, LVS, MHS, MRK, NVS, pfe, Real Money Radio, SGP, SKS, WLP, XOM