• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

The Market's Not that Nasty

People espouse a buy-on-a-pullback view, but don't really do it.
By JIM CRAMER
Jan 31, 2013 | 07:01 PM EST
Stocks quotes in this article: KEY, SAP, DNKN, BRCM, FB, RIMM, DPZ

All day today I wanted to be bearish. I read Doug's columns and I found them very persuasive. Plus, I can't say I am crazy about a set-up based on various short squeezes all over the place like the ones in the cloud and the ones in semiconductors, although they sure passed by Broadcom (BRCM).

But I keep coming back to how broad based this whole rally is. I keep thinking, like my friend and colleague at TheStreet Matt Horween, that we may be just forming a gigantic, well-rounded base. As he just pointed out to me, we have not really surged if you look at a long-term monthly chart.

Plus it is not like we are seeing froth all over the place. They aren't running up bogus biotech or small-cap semiconductors or device stocks that don't make sense.

Instead these are mostly backing-and-filling advances with pockets of selling that are quickly met with buyers, although usually not as fast as Facebook (FB) was today.

To me the buy-on-a-pullback view is something that people espouse, but don't really do. I heard lots of people talking about buying Facebook and Blackberry (still RIM (RIMM) at the moment) on pullbacks, but when they get them they want more of a pullback. You just aren't getting that "more of a pullback" that would make it so easy to join the advance.

To me, the best way to look at this market is with the stocks of the companies I had on "Mad Money." We got a Sell on KeyCorp (KEY) from Bernstein today and the stock barely got hit and then came back and next thing you know I am listening to the CEO and I am thinking "how could a guy put a Sell on a stock this cheap?"

Or Bill McDermott, the Co-CEO of SAP (SAP), comes on and, you know what, I think he's allowed to give his hard sell and deserves it when you consider the growth that he is having NOW in Europe and the share he is taking from everyone else. If only that stock would pull back? I doubt it. We just had a pullback to $77 and it lasted about as long as the blink of an eye.

Then there's Dunkin' Brands (DNKN). People wanted to throw doughnuts at Nigel Travis because international wasn't that strong. I think when he says, as he did on the call, that he has a personnel change that could make things better, I want to give him the benefit of the doubt. The stock's not cheap. But neither was Domino's (DPZ) at $30 and look where that went.

In other words, when I break the market down into its pieces, it just doesn't seem as nasty to me as Doug would make it sound in its entirety.

Just too many stocks like KeyCorp, SAP and Dunkin' out there to make my mouth water ... while I wait for the, ahem, proverbial pullback.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long KEY.

TAGS: Investing | U.S. Equity | Stocks

More from Stocks

Twitter's Charts Get a New Life but the Candles Suggest Caution

Bruce Kamich
Feb 26, 2021 10:31 AM EST

I'm reluctant to probe the long side at this point in time.

What's Driving NL Industries Stock Higher?

Jonathan Heller
Feb 26, 2021 10:30 AM EST

NL currently garners no analyst coverage, which is one of the reasons that you've likely never heard of the company.

Airbnb May Not Be So Hospitable in the Weeks Ahead

Bruce Kamich
Feb 26, 2021 9:31 AM EST

Stand aside for now.

NovoCure Has Broken Down on the Charts: What to Do Now

Bruce Kamich
Feb 26, 2021 9:10 AM EST

Our latest analysis and trading strategy on NVCR.

It's the Fed vs. the U.S. Bond Markets Now!

Maleeha Bengali
Feb 26, 2021 9:00 AM EST

All eyes will be on the Fed during their March FOMC meeting. It remains to be seen what they do next.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:31 PM EST PETER WILLSON

    Has the Short-Term Top Come for the XLF/Banks?

    The has triggered a long-term overbought signal ...
  • 10:10 AM EST GARY BERMAN

    DLTR: The Buck Might Not Stop Here, but I Am Looking for a Bounce

    Dollar Tree is trading inside our long-term boun...
  • 08:36 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 2/24/2021

    SPX (Long-Term View) The 2/16 HIGH @ 3950.43 is ...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login