Cramer: "Ready to Ramp on Options Expiration"
Enviado: 11/12/2006 15:11"Ready to Ramp on Options Expiration"
By Jim Cramer
RealMoney.com Columnist
12/11/2006 8:56 AM EST
"Could options expiration provide still one more ramp to this never-tired market? We have had a series of incredibly strong options-expiration weeks in the last few months, and they have been instrumental in taking us up to new levels each time.
This week could be the same. A non-event of a Fed meeting and some decent brokerage earnings, plus what I believe will be a nice quarter from Best Buy (BBY - commentary - Cramer's Take - Rating), may end up being a positive backdrop for another positive week.
Two possible flaws in the theory: First, all of these IPOs this week, the biggest debut week of the year, although none seem big enough to cause a supply imbalance.
Second, there's the trapping, already, of a lot of the big stocks that matter by strikes. Look at:
Exxon at $75; GE at $35; Microsoft at $30; Altria at $85; AT&T at $35; Verizon at $35; and AIG at $70.
Only a few have upside here: 3M, Procter & Gamble, Caterpillar and Apple, which is probably the one with the biggest shot to the upside.
Bank of America and Citigroup have downside.
It all seems like it could range from being a push to slightly up.
Bottom line: I believe the market goes higher on expiration.
General Electric owns CNBC, for which Cramer is a featured commentator. At the time of publication, Cramer was long Altria and AIG. "
(in www.realmoney.com)
By Jim Cramer
RealMoney.com Columnist
12/11/2006 8:56 AM EST
"Could options expiration provide still one more ramp to this never-tired market? We have had a series of incredibly strong options-expiration weeks in the last few months, and they have been instrumental in taking us up to new levels each time.
This week could be the same. A non-event of a Fed meeting and some decent brokerage earnings, plus what I believe will be a nice quarter from Best Buy (BBY - commentary - Cramer's Take - Rating), may end up being a positive backdrop for another positive week.
Two possible flaws in the theory: First, all of these IPOs this week, the biggest debut week of the year, although none seem big enough to cause a supply imbalance.
Second, there's the trapping, already, of a lot of the big stocks that matter by strikes. Look at:
Exxon at $75; GE at $35; Microsoft at $30; Altria at $85; AT&T at $35; Verizon at $35; and AIG at $70.
Only a few have upside here: 3M, Procter & Gamble, Caterpillar and Apple, which is probably the one with the biggest shot to the upside.
Bank of America and Citigroup have downside.
It all seems like it could range from being a push to slightly up.
Bottom line: I believe the market goes higher on expiration.
General Electric owns CNBC, for which Cramer is a featured commentator. At the time of publication, Cramer was long Altria and AIG. "
(in www.realmoney.com)