I'm not a Cramer disciple by any means. However, he does make a lot of sense especially at major tops and bottoms. I thought this was sensible and want to remind myself of this:
"I found the celebration particularly disturbing because the last thousand Dow points were really the work of a handful of stocks — actually, just four of them: Boeing, McDonald's, UnitedHealth and Apple," the "Mad Money" host said. "In other words, the strength in the Dow isn't much of a tell for the broader market."
I agree with the analysis not that I have any right to second guess Mr. Cramer's analysis and would extend the observation to some non DOW stocks that are bringing the market higher, AMZN, TSLA, GOOG etc. He goes on to say:
"The Dow surged towards this arbitrary mark just as a large fund began selling its positions in a slew of Nasdaq stocks, otherwise known on Wall Street as a "sell program," Cramer said."
That is the whole point of this trading notebook. I am a small investor without access to Wall Street trading algorithms, supercomputers, and lightning fast trading. Right or wrong, and only time will tell my family jumped out of AMZN, TSLA, GOOG at the end of June 2017.
That money is on the sidelines currently. I think IBM is a candidate for getting back in, but need to be patient, right stock at the right price and all of that. Back to Mr. Cramer:
What matters, though, is that there are plenty of companies out there
that saw their stocks get laid low by these sell programs, and when they
get taken down like that, you're always going to hear the sirens of
panic telling you to sell everything," Cramer said. "In reality, it's
more likely to be the sound of opportunity knocking. You just have to
have some cash ready to buy the dip in a responsible way."
I tend to agree, so what are the buying opportunities? I still have my eye on Wal-Mart, but the price is very high. I agree with Cramer on transport and came to that conclusion myself, but still trying to study.
Stocks of companies with no, (or very little), debt and 1 year performance include: CTSX +8, LSI -9, -9, FFIV -12, TROW + 10, ISRG +52%. FRX -6, RHT +25, CTSH -18, ADSK -9, MA +42, EXPD -21.
Mini-thesis: if I can find solid companies with no debt, they will have an advantage. One to look at closely is Mastercard. It is up and I doubt it will drop much, but it almost perfectly matches Visa.
I held ISRG in the past and it was good, lost it in the switch to ETFs. Not sure if I want to add it back with my "mad money".
I want to like F5, FFIV, they just do not seem to have a really compelling product line. I ended up going with Palo Alto, PANW and did a bit better, but just sold it two weeks ago for an ETF. Citrix too, CTSX, was really in a good place ten years ago, but I think the whole cloud thing thumped them a good one. Some of these companies I really don't know, I used to use AutoCad every day, would be fun to start getting to know Autodesk, ADSK again.