Trading Strategies to Survive the Coming Week

The Dow plunged 323 points on Friday as a result of, among other things, a worse-than-expected jobs report. The bellwether average is now down 11% from its high in April. The Nasdaq and S&P 500 have fallen 12% since their recent highs. If this selling pressure continues, Cramer said, there will be an opportunity for "some decent percentage plays" where you can buy stocks at a discount.

The Mad Money host particularly likes accidentally high-yielding stocks, which are offering better returns than bonds right now because interest rates are so low. These are the companies that wouldn’t ordinarily yield at such high levels, but the market has taken the share price down enough to make those payouts attractive. Investors who own them get double the protection: They collect the cash until the market rebounds, then riding the stock back up. And they also get support from new buyers, who flood in because of the yield, putting a floor in the share price.

Among this group of accidental high-yielders, Cramer said he likes EastGroup Properties [MOS 43.06 -1.68 (-3.76%) ], a real estate investment trust, andAnnaly Mortgage [NLY 17.12 -0.14 (-0.81%) ], yielding 5.7% and 15% respectively. With a 5% yield, DuPont [DD 34.41 -1.37 (-3.83%) ] is another one of Cramer's faves because of its cost-cutting measures, good balance sheet and great management.

Last night, he identified a group of stocks that would likely go down, but snap back quickly because they have no exposure to Europe or China .Spanning several sectors, Cramer devised the acronym C.A.N.D.I.E.S.: Chipotle [CMG 143.81 -5.09 (-3.42%) ], Apple [AAPL 255.965 -7.155 (-2.72%) ], Netflix[NFLX 109.78 -2.07 (-1.85%) ], Deckers [DECK 147.16 -6.96 (-4.52%) ],Intuitive Surgical [ISRG 324.67 -12.71 (-3.77%) ], Express Scripts [ESRX 99.1325 -4.0475 (-3.92%) ] and Salesforce.com [CRM 89.64 -5.56 (-5.84%) ].

There are "great stories associated with these stocks, but all stocks are going lower," Cramer said. "And I do mean all stocks."

So how do you play these stocks for the snapback? For some time, Cramer has said the Dow would go to 9,500 if Europe holds and 8,260 if it doesn’t. Today, he wanted to split the difference, telling viewers to pick which number makes more sense to them, depending on how bullish or bearish they are. Then, if they want to buy 10 shares of one of these C.A.N.D.I.E.S., they should spread it out by purchasing just two shares a day, provided each day is lower. If the stock moves higher, though he doubts it will, then that’s just a high-quality problem.

"Leg in slowly," Cramer said, "mindful that we are going lower, not higher, for most of the week" to come.

Five technology trends to watch in 2010

Technology innovation continued its ruthless pace in 2009, despite the economic headwinds. Now it’s time to turn our sights on 2010, where there are going to be some really interesting things to keep an eye on. Let’s count down the five tech trends that should be on your radar for 2010.

5: The consumerization of IT

This is something we’ve been talking about for a couple years but the trend is accelerating. We see it in employees using their own personal laptops and devices for work tasks and using freely available Web tools to help them get their jobs done. This can create a whole host of problems for IT, but in most cases you don’t want to squash it altogether. What you’ll need is a policy that gives employees guidance on how and when these types of tools can and can’t be used, and why.

4: Desktop virtualization

TechRepublic recently asked its CIO Jury about desktop virtualization and 75% said they weren’t interested. However, the 25% that ARE interested are very enthusiastic about using it to cut costs and simplify IT support. In 2010, it’s going to interesting to see if this trend gains momentum and becomes more mainstream, or if it’s simply relegated to a few niche scenarios and industries.

3: E-readers

While most of the buzz around e-readers is centered around consumers readings books and newspapers, there are also a new set of e-readers that will hit the market in 2010 that are aimed at helping businesses streamline the meetings that require huge stacks of paper and bring more multimedia capabilities to business documents. For more ammunition on why you should follow this trend, see Jack Wallen’s article “10 reasons why e-readers make sense in the enterprise.”

2: WAN acceleration

I consider WAN acceleration to be one of the best kept secrets in the IT and business worlds. By caching big files and often-used documents, WAN acceleration appliances and software can save big money on bandwidth costs and give your branch offices and remote workers far better performance on their business applications. Companies like Riverbed are even taking WAN acceleration a step further and using it to help speed up hosted cloud applications by partnering with major SaaS providers. All of this makes WAN acceleration one of the hottest projects in IT right now, because it can offer fast ROI and immediate productivity benefits.

1: Berries, apples, and robots

What do these three things have in common? Well, of course, we’re talking about smartphones with BlackBerry, Apple iPhone, and Google Android. These are the three smartphone platforms that have the most momentum heading into 2010. With smartphones becoming standard tools for more and more business workers, it’s going to be important to watch which devices users gravitate toward, which platforms offer IT more security and manageability features, and which ones developers latch on to as the best place to build new applications for business users

 
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