On 1/8/09 Cramer issued his sell, sell, sell call on STX based on the totally false concerns about inventory build ups and pending cost cuts, see post:
Stock fell from $5.60 to $4.72 on next trading day on 22 million shares. Two weeks later the stock began its run from $3 to $18.84 today.
He showed legitimate charts to support his position.
STX has huge short float and manipulation. That's contributing to its current price pull.
Cramer loved STX. His change of heart seems pretty genuine to me.
its complete fabrication
pull up a chart of the QQQQs
now plug in STX and GOOG and APPL, etc
guess what...STX is the only one bouncing above its 50 day MA on volume in this recent bounce
the analysis offered by cramer is a lie. and ken shreve has said nothing on realmoney.com
i believe they know a merger or buyout offer is coming whether cisco, etc...and this was their final attempt to shake retail out
cramer covered himself by saying STX really is cheap
"He showed legitimate charts to support his position"
He showed a weekly chart with what appeared to be the 50 DMA average.
Here are more charts, look at them:
From these charts:
Little or no evidence the smart money is moving out:
1. First of all since early January, STX has posted 6 up days where volume was 40% or higher above average trading volume to just 4 down days where volume was 40% or higher above average.
2. The two cumulative volume index charts, money flow and on balance volume are higher today than there were 3 weeks ago and the on balance volume chart is matching a 12 month high.
3. The stock did sell off on high volume last Thursday and Friday, but during the last trading three days the stock is up 12% with volume on each day 50% above normal.
4. On the price chart, STX did viloate both its 50 DMA and bottom bollinger band on Friday, but quickly moved above them over the last three days.