Jim Cramer says chip stocks are staging a revenge trade. Not a recovery. Not a bounce. Revenge. The semiconductors got mad about last week and decided to f*ck back.
This assumes stocks have feelings. It assumes they remember slights. It assumes Nvidia woke up Monday morning, checked the charts, and said "those bastards are gonna pay for what they did to me on Thursday."
The selling was misguided, according to Cramer. Meaning the people who sold were wrong and the people who bought this week are right. He knows this because prices went up. That's the entire epistemology. Price goes down, sellers were smart. Price goes up, sellers were idiots who deserve punishment. The chips are here to deliver that punishment.
Revenge trade is a term adults use on financial television. It sits next to rotation and profit-taking and consolidation in the cabinet of phrases that mean absolutely nothing but sound like market analysis. A stock goes up 4% and suddenly it's John Wick. It's Kill Bill. It's out for blood because somebody sold it at $140 instead of $147.
Retail traders heard revenge trade and bought calls at the top. They always do. They think they're joining the revenge plot. They're not. They're the extras who get killed in the opening scene so the audience knows the villain is serious.
Next week the chips will sell off again and Cramer will call it a healthy pullback or a rotation into value or a consolidation pattern. He will not call it revenge. Revenge only works in one direction on CNBC.
The misguided sellers from last week are now the misguided buyers, but they won't know that until Cramer tells them in six days.
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