TheStreet.com's Jim Cramer says the downside for these stocks is smaller, but they won't be his first line of defense. You should not get oil ramping and retail ramping. You can't have early-cycle running and commodities running, even though I know that commodities are a "rest of world" story.
I believe that Wal-Mart (NYSE: WMT) (Cramer's Take) can run, but the others? I have to say that if oil isn't going down, these stocks will have a failed rally and retreat again, but not below their recent lows.
The early-cycle rally of the higher-end retailers is the most problematic, because it is the least backed by the estimates. Look how excited everyone was about Best Buy (NYSE: BBY) and now look how poorly it is trading. Nordstrom (NYSE: JWN) (Cramer's Take) and Target (NYSE: TGT) (Cramer's Take) should get hammered again for a couple of points, because the numbers for March are going to be awful.
Can you be nimble enough? If you can't, don't bother. These stocks will no longer fold as they have: too cheap with $600 coming at consumers and easy comparisons.
But I can't say they would be my first line of defense for when this rally ends, and remember: the last time we were overbought, we got a 1,500-point decline.
I expect less. However, wouldn't you like to sidestep that one?
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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.
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Reader Comments (Page 1 of 1)
4-03-2008 @ 2:33PM
doclee001 said...
And what did he say about Bear-Sterns? Oh yeah, everything is hunky dory.
4-04-2008 @ 1:29AM
WhirledPeas said...
Jim Cramer may be either in the middle of a nervous breakdown or clearly explaining to you how to get your seats in the chair before the music stops. Evidently the music dies at 3:31pm daily. (EST)