NEW YORK (TheStreet) -- Jim Cramer fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:
- Friday's unusual stock market activity; and
- what F5 Networks' blowup means.
Click here for information on RealMoney, where you can see all the blogs, including Jim Cramer's -- and reader comments -- in real time.
The Market Fooled Everyone Today
Posted at 4:05 p.m. EDT on Friday, April 5
You can tell for certain what "they" like on days like today. "They" (meaning the collective wisdom of the market) love real estate investment trusts and the utilities, both of which "they" regard as yield equivalents backed by hard assets.
We may think this is all Ben Bernanke's doing, but I think that's so wrong. In fact, rates are where they are now because they are the world's safe haven -- except the rich people around the world who want a little extra yield. Plus, remember that this week President Obama moved on making foreign pension plans exempt from U.S. taxes on real estate trades, meaning they no longer pay taxes when they take profits on REITs. So the money's going there aggressively.
We are also witnessing an astonishing rally in the financials that makes little sense other than they have been down a lot. They don't have the yield, they don't do well in this yield environment and they are most likely going to disappoint when they start reporting, which is as soon as next Friday when we hear from JPMorgan Chase
The transports and materials companies? They were hammered hard ahead of the number, so you can see people saying, "Ah-hah, now we know why they were down. So we can go buy them." I get the first. The second? I don't know. I fear the earnings.
Finally, we have this amazingly weird move in retail. There was nothing good about retail in today's employment report. Same with restaurants. Explanation? Well, the companies themselves have said things are fine. They are saying raw costs are better. They are saying that better weather is bringing in customers.
In the end, though, the market's pretty much fooling everyone today. It's breathtaking. The first time I can ever recall that a shockingly horrible employment number didn't cause a precipitous decline.
"They" may seem crazy. But maybe "they" have no other place to go.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
Does F5 Blowup Tell Us Much?
Posted at 6:46 a.m. EDT on Friday, April 5
I have to ask, is this really revelatory?
This stock has been headed down for months because it is not a cloud play. It is a play on your own internal hardware. And the world is going away from it.
How do I know this? Because Facebook
Now, I know on the call F5 took a real shot at Cisco
But right now I am saying this is F5-specific. I doubt a soul believes that.
But that's the only way I can read it.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long FB.
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