Software stocks rallied last quarter. Chip stocks pulled back. Jim Cramer now says software can keep climbing. He's telling you this after the move already happened.
This is the equivalent of your neighbor screaming that your house is on fire while you're standing in the ashes holding a garden hose. The information arrives perfectly on time if you're writing a insurance claim. Less useful if you wanted to save the furniture.
The "AI-driven sell-off" in software stocks reversed. Meaning investors panic-sold because chips were the hot trade, then panic-bought when they remembered software companies also use computers. The technical term for this is "having no f*cking idea what you own or why you own it."
Cramer's thesis: software stocks bounced back, therefore they can keep bouncing. This is the kind of momentum analysis you get from a man who watches a basketball go up and concludes it has discovered flight. Gravity is just FUD spread by short sellers.
The chart doesn't care that Cramer likes software now. The chart didn't care when he liked chips six months ago. The chart is currently painting a head-and-shoulders pattern while retail traders Google "what is a head-and-shoulders pattern" and accidentally click on shampoo ads.
Software roared back. Roared. As if $MSFT cleared its throat and every Robin Hood user with twelve hundred dollars in buying power heard the call of the wild. They're out here trading like they're going to time-travel back to Q2 and catch the bottom they already missed.
The stocks already climbed. Cramer says they can keep climbing. He's technically correct in the sense that stocks can do literally anything. They can also fall. They can go sideways for eight years. They can split. They can get delisted and traded on a forum where people accept payment in gift cards.
But sure, chase the rip because a TV personality said "can" instead of "will."
Photo by Zulfugar Karimov on Unsplash
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