Homepage / Investment / Cramer on how stock-picking in this market is like good fishing
Google and Facebook are watching our every move online. It's time to make them stop Daymond John tells shy airline passenger: You should have talked to me on the plane South Korea says it has no plans to shut down cryptocurrency trading AMD shares surge as Wall Street analysts say the chipmaker is ‘executing on all fronts’ James Altucher, the face of bitcoin, says he’s happy about Facebook’s cryptocurrency ad ban Pending home sales eke out 0.5 percent gain in December as supply shrinks to record low Uber is testing bike sharing in San Francisco The real source of the internet's problems might be the advertising business Game publisher EA's sales forecast tops estimates, sending shares higher GE will likely be dropped from the Dow, Deutsche Bank predicts Samsung surpasses Intel as world's biggest chipmaker for the first time Apple could be the best of the bunch in this tech earnings avalanche The 9-year stock rally still has 'years left,' says one of Wall Street's most bullish strategists Apple: We would never degrade the iPhone experience to get users to buy new phones Bitcoin headed for biggest monthly drop since January 2015 with nearly $60 billion of value wiped off ADP boosts forecast as new tax law spurs demand China 'will open even wider to the UK,' says Prime Minister Li Keqiang Big market swings are something you’re going to have to get used to, says Wells Fargo The dollar keeps weakening. Is that good news for the world? Apple downgraded by BMO, expects iPhone maker to slash revenue forecast this week SoftBank buys majority stake in Japanese messaging giant Line’s mobile division Rising interest rates cause a 2.6% pullback in weekly mortgage applications Trump's State of the Union address 'less hard' than first feared in Asia Trump vows to protect US intellectual property, without naming China Blockchain technology to boost Microsoft earnings, trader says Fujifilm to take over Xerox and combine it into the joint venture Fuji Xerox Samsung is making chips designed to mine cryptocurrencies like bitcoin There’s a risk of market turbulence, but it’s unlikely to hit until 2019, says Santander chairman We'll see up to a 15 percent correction in 2018, Swiss bank CEO says Japan's biggest messaging app Line is planning to launch a cryptocurrency exchange Quicksilver surfwear CEO missing at sea off the coast of France Venezuela says will pre-sell 'petro' cryptocurrency on Feb. 20 Nintendo ups its Switch sales expectations to 15 million units after profits rise 261% European markets seen mixed amid earnings and economic data The UK wants free trade with China. Beijing has its own goals Santander fourth-quarter net profit down 4 percent on US impairments The man who almost became ambassador to South Korea just warned about US plans for North Korea China's Leshi Internet flags $1.8 billion loss for 2017, citing conglomerate cash crunch South Korea says it uncovered about $600 million in cryptocurrency crimes Asia became less democratic in 2017 Al Gore's investment firm backs start-up created by Facebook co-founder Theresa May says she wants a free trade deal with China Chinese manufacturing weaker than expected in January Webpass is leaving Boston in latest sign of Google Fiber’s shrinking ambitions Samsung posts record fourth-quarter profit Asian shares look set for more declines as Wall Street sells off for a second day Don't count insurers out yet after Amazon-Berkshire-JP Morgan move Amazon's health care move could be a big win for consumer health start-ups Red Hat buys CoreOS, a start-up that sold tech developed by Google Here’s what Amazon told employees today about its landmark deal to deliver better health care Top official resigns after false missile alert in Hawaii Crazy odds: These online traders bet on the chaos of Washington and the Trump administration AMD falls despite beating Q4 estimates Facebook ban on bitcoin ads latest in very bad day for cryptocurrencies Indian man dies after being sucked into an MRI machine while carrying an oxygen cylinder Advice for Jeff Bezos, Warren Buffett and Jamie Dimon from a failed effort to control health costs Toys R Us poor holiday sales cast doubts on its future and could force renegotiation of loan terms The Apple sell-off is a buying opportunity into earnings, says trader Google partnership on mobile cloud services drives up MobileIron shares Facebook is banning all ads promoting cryptocurrencies — including bitcoin and ICOs Amazon's moves in health care over the last year are finally starting to make sense Buffett is getting a second chance to partner with Bezos after missing on Amazon as an investment How Pencils of Promise got a $1 million donation from an anonymous bitcoin multi-millionaire Amazon's home devices could be a key to cheaper health care, tech investor Roger McNamee says Two ex-Google engineers built an entirely different kind of self-driving car Cryptocurrencies join the global financial market sell-off as bitcoin drops 7% A travel agent is trying to charge fees for sunbeds Most of the tax cut windfall will boost buybacks and dividends, not workers' pockets, survey predicts The professor who wrote the book on making addictive technology is having second thoughts Trump's immigration policies are 'economic poison' that will cost taxpayers billions Airbnb trolls President Trump ahead of the State of the Union The iPhone X's $1,000 price tag scared everyone away Drop, a rewards app start-up, snags Airbnb's former head of engineering SEC halts one of the largest 'ICOs' ever as it wades deeper into the murky world of cryptocurrency offerings Passing on sanctions, Trump goes even softer on Russia than expected Buy insurers on dip as new initiative from Amazon, Berkshire and JP Morgan is ‘more bark than bite’: Analyst High schools stock up on Narcan to combat teen opioid crisis in US Apple will finally replace the fax machine in health care Apple is reportedly delaying new iOS features until next year because of quality problems Bond expert predicts a ‘wall of buying’ in Treasurys will protect the stock market Home prices surge to new high, up 6.2% in November Noted tech investor says the sector is not the best place to invest right now Sterling predicted to hit pre-Brexit vote level before the end of 2018 Stocks making the biggest moves premarket: AMZN, BRKB, JPM, AAPL, BX, TSLA & more Bitcoin boom to give AMD earnings a boost, says MKM Partners Apple shares fall again on another report of fading iPhone X demand Trump advisor Cohn: President to focus on $1.5 trillion infrastructure plan in State of the Union Why don't foreign investors take fright more often? The dollar is doing something it hasn’t done since 1987 UnitedHealth, CVS plunge on Bezos, Buffett and Dimon plan to improve U.S. health care Amazon, Berkshire and JPMorgan Chase to team in landmark new health care company Can earnings afford to slow down? 'Enemies of the USA': Russia slams America's list of oligarchs with ties to Putin The app that exposed the location of military bases with a heat map is reviewing its features For his next act, former Amex CEO Ken Chenault turns his focus on Silicon Valley Child experts: Just say ‘no’ to Facebook’s kids app Ryanair agrees to recognize British pilots union for first time Arab states are 'determined' to stick with reforms despite deepening 'frustration', IMF says The US 'oligarch list' is strikingly similar to Forbes’ richest Russians ranking Indian ride-hailing firm Ola expands to Australia to take on Uber

Investment

Cramer on how stock-picking in this market is like good fishing

In many ways, CNBC’s Jim Cramer finds each trading day in the stock market to be very similar to a good fishing trip.

“This is like fishing, catching a 40-inch edible fish every day, each different from the day before,” the “Mad Money” host said about the bounty of high-quality stocks.

Wednesday’s catch was the stock of McDonald’s. Shares of the fast-food chain broke out to all-time highs on practically no news, closing above $163 a share. Despite its lack of obvious upward drivers, Cramer said the inevitable analyst recommendations would likely help, not hurt.

Also swimming higher were shares of PayPal, which was upgraded to “buy” from “hold” by a major firm that argued worries about PayPal’s negotiations with eBay were overblown.

“This was a gift. I’m calling it a 40-pound striper caught surf casting,” Cramer joked.

But Cramer couldn’t help but wonder why such different situations are all working for these stocks, so he compiled a list of reasons for why the market is brimming with winners.

The final months of the year are usually when big funds start thinking about their performance and turn to the stock market to solidify their gains so they don’t lose clients, Cramer said.

“You can’t show performance in this market without buying stocks,” he added. “It’s that simple: for money managers, you know what this period is? This is the buy or die period.”

President Donald Trump’s pro-stock market standing has also made a difference, Cramer said. While his health care and tax reform initiatives have been obstacle-ridden, his pro-business position has resonated with companies that feel less worried about strict regulations.

“You can tell from his tweets that he grades himself by the performance of the S&P 500 the same way he graded himself with the Nielsen ratings when he started ‘The Apprentice,'” Cramer said. “I know he disbanded the economic councils, but he still has those contacts and he knows what sends the stock market higher.”

As the market outlook grows more positive, analysts are scrambling to present their clients with new stocks that seem to have promising stories, the “Mad Money” host said.

“If you work at one of these larger brokerage houses, your research director is in your face begging you to put out some new names knowing they’ll pop,” he explained.

Bad news from Greece, Italy and France used to dominate headlines, but these days, Cramer sees the global playing field rapidly improving.

Japanese stocks are soaring, European economies are gaining momentum, Brexit worries have subsided and the conflict between Spain and Catalonia hasn’t been as market-rattling as feared.

A slower news cycle has had little to no effect on stocks save for the potential for a December interest rate hike by the Federal Reserve to taper the strength of the economy.

That would cause the bank stocks, which report earnings on Thursday and Friday, to surge higher and flaunt larger price-to-earnings multiples, Cramer said.

Investors’ exuberance can’t last forever, but what has surprised Cramer most has been the lack of “over-fishing” in any one stock.

“Some are game fish like Nvidia, hitting an all-time high on autonomous driving chips. Some are the bottom fishers: Intel, AMD, Kroger. Some are brick-and-mortar retailers that typically rally for a few days, then you’ve got to toss them back. Those are strictly catch and release. And some are just delicious dinners like McDonald’s, Visa, MasterCard, Wal-Mart, visible from the surface — branzino — capable of being lured in with some chum and a couple of dumb minnows,” Cramer said.

Bad, “inedible” stocks do persist: the oil cohort has been very volatile of late, and consumer packaged goods companies that aren’t prime for takeovers have been pummeled.

“As the legendary Ella Fitzgerald sang in ‘Summertime,’ the fish are jumping [and the] cotton is high,” Cramer said. “If you don’t grab a pole, though, and buy some bait, it’s all going to be lost on you as it is on so many Americans who don’t know a rod from a reel.”

Disclosure: Cramer’s charitable trust owns shares of Nvidia. Also, “The Apprentice” airs on NBC, which, like CNBC, is owned by Comcast’s NBCUniversal unit.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagramVine

Questions, comments, suggestions for the “Mad Money” website? madcap@cnbc.com

Source: Investment Cnbc
Cramer on how stock-picking in this market is like good fishing

Comments are closed.