Jim Cramer's Mad Money Review

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
5+ Consecutive Down Days: These are stocks that have closed down for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that close down for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. Historically, these stocks have provided traders with a significant edge.
Alberto-Culver (NYSE:ACV - News) & Eaton (NYSE:ETN - News). ACV's PowerRating is 7, and ETN's PowerRating is 6.
5+ Consecutive Lower Lows: These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
CVS Corporation (NYSE:CVS - News) & Diamonds Trust (NYSE:DIA - News). CVS's PowerRating is 6, and DIA's PowerRating is 6.
2-Period RSI Below 2: These are stocks that have a 2-period RSI reading below 2 and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving with a 2-period RSI reading below 2 have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Sony (NYSE:SNE - News). SNE's PowerRating is 7.
Bearish
5+ Consecutive Up Days: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Dr. Reddy's Labs (NYSE:RDY - News). RDY's PowerRating is 3.
5+ Consecutive Higher Highs: These are stocks that have made a higher high for five or more consecutive days and are trading below their 200-day moving average. Our research shows that stocks trading below their 200-day moving average that make higher highs for five or more days have shown negative returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Komag (NasdaqGS:KOMG - News). KOMG's PowerRating is 2.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ACV, CVS, DIA, ETN, Hot Stocks, KOMG, RDY, SNE

A Second Look at Cigna (NYSE: CI - News)
Although Cramer has not liked Cigna in the past, he is taking another look at the non-pharma health care company because of its serious buyback plan. "Nothing is more reassuring than a company that believes in itself," said Cramer, noting that Cigna bought back 20% of the company since 2004 and is shrinking its number of shares so rapidly, it is "practically going private." Cramer declared, "The single biggest bull market is in the nonpharmaceutical health care sector," and he would buy Cigna.
Volcano (NasdaqGM: VOLC), Boston Scientific (NYSE: BSX - News), Johnson & Johnson (NYSE: JNJ - News), and General Electric (NYSE: GE - News)
A great way to play fears over drug-coated stents is to buy Volcano, a company that makes intravascular ultrasound catheters which examine the inside of arteries, according to Cramer. Although this technology is not new, it has been underused until the recent stent controversy. Volcano's largest rival is BSX, which Cramer calls "the Citigroup of healthcare" and Volcano has partnerships with JNJ and GE.

Beware of Tech: Oracle (NasdaqGS: ORCL), Microsoft (NasdaqGS: MSFT), EMC (NYSE: EMC - News), SanDisk (NasdaqGS: SNDK), Seagate (NYSE: STX - News), Western Digital (NYSE: WDC - News), Komag (NasdaqGS: KOMG), IBM (NYSE: IBM - News), Micron's (NYSE: MU - News), Texas Instruments (NYSE: TXN - News), Intel (NasdaqGS: INTC), Advanced Micro Devices (NYSE: AMD - News), Garmin (NasdaqGS: GRMN), Qualcomm (NasdaqGS: QCOM), Cisco (NasdaqGS: CSCO), Hewlett-Packard (NYSE: HPQ - News), eBay (NasdaqGS: EBAY), Apple (NasdaqGS: AAPL), Yahoo! (NasdaqGS: YHOO) and IAC/InterActive (NasdaqGS: IACI)
Cramer devoted his Sell Block segment to warning investors not to touch tech until summer, with a few notable exceptions. "Don't be bamboozled by hopeful analysts," he said, and added ORCL, MSFT, EMC, SNDK, STX, WDC, and KOMG are not buys right now. Cramer said IBM should not be bought until it has some "breakthrough earnings releases" and urged investors to ignore MU's upgrade and to avoid TXN, INTC and AMD. However, the few tech stocks worth buying now include GRMN, QCOM, CSCO and HPQ, EBAY, AAPL and YHOO. Cramer is removing IACI from his list of buys.
CEO Interview: David Snow, Medco Health Solutions (NYSE: MHS - News)
When Cramer asked David Snow how his company makes money off of drugs that go generic, he replied, "In the case of generics, $50 billion of branded drugs are going off patent between now and 2011. We are going to work very hard to appropriately move people from branded drugs to generic drugs, and we make money doing that." On the topic of Medco's cash flow, David Snow said the %5.5 billion buyback program is up and running, and the company might make a future acquisition. Cramer said Medco is the definition of a buy in the current environment.
Published By SeekingAlpha

Labels: AMD, BSX, CI, CSCO, EMC, GE, HPQ, IACI, IBM, Jim Cramer, JNJ, KOMG, Mad Money, MSFT, QCOM, STX, VOLC, WDC, YHOO