Cramer's Mad Money - 3 Strong Earnings Reports Do Not Make a Tech Bull Market (7/19/11)
By Miriam Metzinger: Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday July 19.
IBM (IBM), VMWare (VMW), Apple (AAPL)
With fantastic earnings from IBM (IBM), VMWare (VMW) and Apple (AAPL), does Cramer regret his bearishness on tech, and is it time to buy the sector? Cramer explained that, in the last ten years, tech stocks have consistently underperformed the S&P 500 from June until September. A few strong tech earnings reports in the past few days can't fight against the general trend that summer is not the time to buy tech. The sector starts to decline in January, after the holiday season, and doesn't recover until after the Back to School rush is over and inventories are cleared out. Another reason tech is slow in the summer is that Europe basically goes on vacation and stops buying, and with the European economy in the doldrums, lackluster performanceComplete Story »