Homework: Trading on a Cramer "meme"

[zyzzyva57]

A meme (http://en.wikipedia.org/wiki/Meme) is a factoid (http://en.wikipedia.org/wiki/Factoid) that catches on and becomes illogically meaningful to the common folk, e.g., the 10-year Treasury note yield, the iPhone, the Boeing 787, the Dow 14,000 bench mark, and in the future the latest Harry Potter novel, and no doubt coming soon for the Christmas season, the "big" toy or video game

Catching a meme at the right angle and time equals a big pay day--if one also catches the right exit point--but juggling memes can be hazardous to one's financial health

Master Cramer is excellent with catching tech memes, but I submit awful with drug stocks, because the FDA can out-of-the-blue yank a drug in Phase III clinical trials, which for a $10 stock sinks the stock

The problem one must sort through with Cramer is how best to protect one's self, because his back story will be equally compelling be it the tech toy or game for the next Christmas season or a small drug company with something that seems cannot fail

The rule with a meme is simply recognizing one and then how has one protected himself against the Factor X

The turkey lives awfully well with Farmer Brown feeding him on time daily till the day before Thanksgiving...

Steve Jobs can get away with option dooling, because he is Jobs, but suppose he simply dies...Buying into the Apple cult is tasty, but consider the Factor X turkey story when trading on a meme...

[Niketennis1]

ENR, Energizer is a meme with its ner battery for the ipod. Catching these memes early can get you some good money. I think you have to catch these meme's early to be a good trader and even investor.

[TonyM]

Just one comment' the 10 yr is what affects mortgage lending rates, so I don't think it qualifies as illogically meaningful as it has very real repercussions to even a non-market player.

[zyzzyva57]

I have no doubt the 10-Year note is important, but what hit me as odd was how important this metric was for about a week, then disappeared as important

This is along the same lines as those pesky Nigerian rebels who seem to awake from their slumber just when an oil price spike needs a "face" to the Law of Supply and Demand

My point is there are sub-memes, e.g. for stock market fans, as there are teen memes

As I said, Cramer is excellent spotting potential tech memes--watch him about September spotting a trade for Christmas

With investing in a meme, just remember my turkey story, e.g., I love Google, but if I owned a hunk, I would always keep in mind there is always a potential "Thanksgiving" -- Cramer, I think, is discovering SHLD may be having its "turkey day" early

[coolio]

I invested in HAS a while ago and came in at 31.60. I gambled that the Transformers movie would do great, which it has. HAS has the tie-in to the merchandising. The stock has done ok (up 3% since), but has not broken away.

The movie is turning out to be the surprise hit of the summer. It did $36 million this past weekend. This was great considering it was up against Harry Potter. Total haul thus far: $223 million.

I'm thinking that the sales #s for HAS will be reflected in the next two quarters. Hopefully, that'll be my big bounce.

[zyzzyva57]

That is the problem often with memes, because an event may not have a trading meme

For example, Master Cramer has said with a Sony hit, the company is so huge, a money making event (non meme) really does not help Sony

To study a meme, reflect on the iPhone, say starting last year: think about how this wave was built

Unlike with Sony, Apple is the right size to capitalize on a meme

Again, watch Cramer as Christmas approaches: he will spot a good meme (Last year, everyone missed the Wii meme)

Two years ago, he made a beautiful trade on the xBox with one of the chip providers--Oh, it was beautiful

I did the same thing with SIRI when Howard S. came aboard--This peaked with a "60 Minutes" show--that Monday, I sold SIRI as it began to drop to its present level--a washed out meme

[TonyM]

I have no doubt the 10-Year note is important, but what hit me as odd was how important this metric was for about a week, then disappeared as important

This is along the same lines as those pesky Nigerian rebels who seem to awake from their slumber just when an oil price spike needs a "face" to the Law of Supply and Demand

My point is there are sub-memes, e.g. for stock market fans, as there are teen memes

As I said, Cramer is excellent spotting potential tech memes--watch him about September spotting a trade for Christmas

With investing in a meme, just remember my turkey story, e.g., I love Google, but if I owned a hunk, I would always keep in mind there is always a potential "Thanksgiving" -- Cramer, I think, is discovering SHLD may be having its "turkey day" early


Oh I understand your point completely. The 10 yr is still plenty important beyond one week...just not to the msm (stations like cnbc, cough, cough). The 52 week range on a 30 yr fixed is 5.67% - 6.57% all without a fed rate change. Now the Nigerian rebels, well that's a whole different ball game;)

Anyhow, as I said I get the jist of your thread, I just objected to the 10 yr mention because I noticed the same lack of hype associated with it that you refer to, by the msm.