Europe's gone from being a land mine for tech last week to being a gold mine for tech this week. The same people who wanted to short the cohort -- particularly the Hewlett-Packard (HPQ) , EMC (EMC) , Dell (DELL) , Cree (CREE) , SanDisk (SNDK) portion -- are now scrambling to buy and go long as we see the IMF-mandated government-spending cuts be implemented in the ne'er-do-well countries. IBM's (IBM) positive comments today are just icing on the tech cake.
I can't express how important this all is to the market, because we haven't had tech because of Europe, we have lost oil because of the futures and the Gulf, and as long as we have Congress in session debating financial regulations while authorities go charging banks, we don't get anywhere. That's a huge percentage of the S&P.
You know me, I key off of Apple (AAPL) and its derivatives, notably Cirrus Logic (CRUS) these days. Here we gallop toward my $300 price target, and if we get a 52-week high, it will be confirmation of what I thought -- the group's got the momentum despite the seasonal slowdown and endless chatter about motherboard inventory overloads and NAND oversupply.
I was surprised and let down by the Intel (INTC) reaction. (You can read it in our Action Alerts PLUS bulletin). Maybe Cisco (CSCO) can help the cause -- tonight's business, of course.
But you have to be gratified that with Europe coming back -- again, the spreads tell the story -- the big bear case might be off the table.
Amazing to me that everyone decided that this group was all about Portugal, Spain and Greece. I bet there are more PCs sold in New York than all three of those countries combined.
Random musings: The 10-year auction is looking good!
At the time of publication, Cramer was long EMC, Apple, Intel and Cisco.