CNBC "Mad Money" host Jim Cramer credits lack of government regulation with a recent market jump in technology stocks. The tech-heavy NASDAQ composite (NASDAQ) shot upward 3 percent, from July 8 through July 23, even defying other market indexes that had down days in the same time period.
Cramer theorized on his July 23 show that the tech sector during that time period, despite the setback on July 24 in the wake of news that Microsoft (NASDAQ: MSFT) reported lower than expected earnings - because of government.
"So, now let me explain a pattern that I've discerned that could be incredibly important - important for you to take profits on if President Obama regains his clout and starts pushing hard with the rest of his agenda," Cramer said. "Everyone today wrote him off because of health care. I got to tell you, you can't write this guy off. He's too darn popular."
Cramer explained that there are underlying, always not-so-obvious reasons beyond the fundamentals of a company that can push a prolonged rally.
"Let's look at the streak the tech stocks have had here," Cramer said. "The NASDAQ has now closed up 10 straight days, 12 days. When you see something like that, you got to take a step back and ask yourself, ‘Is there something going on that's bigger than all the visible themes - the ones that I've talked about on the show endlessly - the low semi-conductor inventories and product cycles based on the mobile Internet, and valuations that just got too low.'"
That reason - a reluctance by Washington to regulate the tech sector on profits, compensation and other areas that the politicians have their eyes on.
"There is," Cramer explained. "I figured it out. Washington doesn't care about tech. It's not trying to legislate tech out of its profits. It's not trying to handcuff tech into pay, having a higher cost. That's right, I'm telling you tech is immune from President Obama and more importantly Politburo chief Nancy, I mean Democratic chieftain Nancy Pelosi. And that's why tech can go higher."
The "Mad Money" host also explained the tech sector was impervious to card check, cap-and-trade and other liberal hot-button items the Obama administration is attempting to push through Congress and that had a lot to do with its success.




















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Immune From Pelosi
July 24, 2009 - 12:47 ET by JDWYesterday morning I got a tip that the DNC was attempting to force Pelosi out yet have been unable to confirm it. Anyone seen anything to that effect?
JDW
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Jobs, jobs, jobs ... Spending, spending, spending
Re Princess Nan
July 24, 2009 - 13:33 ET by slickwillie2001Haven't heard anything on that. It's generally accepted by democratics that Pelosi is dumb as a bag of rocks, but as a democratic also noted a couple of weeks ago, "she is mean as a snake", and most grudgingly accept that she has been effective as a House leader. She is also very safe in her San Francisco district.
The CIA controversy could be her undoing if Congress would do an investigation of her lies regarding the CIA. If there were significant democratic numbers in the House or the appropriate committee for such an investigation, that would be one path to her unseating. Doesn't look likely today. I wonder what the Bamster thinks of her.
Pelosi
July 24, 2009 - 13:54 ET by JDWWhat I was told amounted to Obama essentially throwing her under under the bus. Obama wanted bipartisan bills to create 'change' all could be happy with yet Pelosi took it to an extreme. Her results have created nothing but negative consequences and the people are unhappy. She must be removed and replaced by who can take care of America.
JDW
DAILY WAVE
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Yeah, he's so darn popular that
July 24, 2009 - 13:25 ET by lsudolemitehis approval rating tanked by double digits in the span of only one month, and closing in on 20 points from his all time high. That's a guy I want to attach my portfolio to.
"...if President Obama
July 24, 2009 - 13:56 ET by RR GOP"...if President Obama regains his clout and starts pushing hard with the rest of his agenda,"
I agree. I can't see him sulking like Slick Willy did before Newt and the Republicans saved his presidency.
One of the 34% who thinks George W. Bush was a great President. One of the 61% who wants to bring back the stock and pillory (yep...approval for Congress now at 39%...do you believe that!?).
Re Princess Nan II
July 24, 2009 - 14:35 ET by slickwillie2001Found this at Forbes magazine:
Get Rid of Pelosi: http://www.forbes.com
Mostly editorializing; some polls quoted.
Good Job
July 24, 2009 - 15:04 ET by JDWOne of the other things I heard was that her polls are lower than Palin's.
JDW
DAILY WAVE
Jobs, jobs, jobs ... Spending, spending, spending