Cramer on tonight’s MAD MONEY on CNBC discussed the sell-off in tech, but said you can’t just sell it all. Cramer said it’s time to pull the plug on tech until further notice UNLESS they pass the Cramer test. He said the calendar dictates this, and the best way to trade tech is by the calendar and it is rarely wrong. This was something I noted earlier today where he has changed his stance on tech.
He says Sell in January and Buy in August and hold until Mid-December to mid-January.
There are parts that MUST be given the boot, but he has 5 techs he still blesses. He said unload storage, semi’s, handhelds, software, and cell phones. There is also more than just the calendar, the competition is killing them. He said you can’t touch Intel (INTC) or AMD (AMD) ahead of the Vista launch because of a price war.
He said you have to sell National Semi (NSM), RF Micro (RFMD), and Micron (MU). The only way to win in cell phones is by price, but that’s a loser trade so he is negative on Nokia (NOK), Ericsson (ERIC), and Motorola (MOT). SAP (SAP) blew up, Rackable (RACK) blew up, sell EMC (EMC), Brocade (BRCD). Research-in-Motion (RIMM) is also a sell.
He still owns Marvell Tech (MRVL) and MRV Communications (MRVC). He will be addressing 5 tech stocks he wants to hold for the next few months.
Jon C. Ogg
January 17, 2007
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