Jim Cramer Actually Got It Right... Only, Three Months Later?

Posted on by The INO.com Team

It's no secret that we've been socked with snow this past week. During that time, I was flipping through channels and came across Jim Cramer's show Mad Money. I've said this before, Jim is a great entertainer. I am not so sure how good he is at picking stocks.

He mentioned shorting one stock, Garmin (symbol GRMN). What he said about Garmin sort of made sense to me both from a technical and fundamental viewpoint.

So here is the fundamental viewpoint... Many of the new phones that are coming to market are referred to as "smart phones" and have the same capabilities as a standalone, turn-by-turn GPS. In my own case, I have an Apple iPhone. I was looking for a navigational application in the App Store and found exactly what I needed and the good news was - it was free, that's right free. So the question is, why would anyone pay $150, $200, or even $300 to Garmin to have one of their systems? Fundamentally, I think his case is very sound.

Then, I looked at the technical picture for Garmin and noticed that we had a red monthly "Trade Triangle" sell signal some time ago (November 4th to be exact at the price point $27.06). So here we are some three to four months later having Jim Cramer tell us that Garmin may be a short.

For my money, I want to be trading the "Trade Triangles" and not listening to Jim Cramer and getting old news.

In this short video on Garmin, you will see exactly what were looking at and where the signals kick in. I also point out where one very important technical indicator is at a tipping point.

As always our videos are free to watch and there are no registration requirements.

I hope you enjoy the video and make a comment on the blog about how you feel about this market.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

17 thoughts on “Jim Cramer Actually Got It Right... Only, Three Months Later?”

  2. Mark,

    Thank you for your feedback.

    If you watched our videos on the market indices, you would see that right now we are neutral on the market based on our Trade Triangle technology.

    You will also see that we never have had any major sell signal with our monthly trade triangle since it signaled a major buy signal in March of 2009, almost a year ago. The monthly Trade Triangle needs to be red and in place before we can officially short the indices.

    Mark, I am not the King, far from it. I'm just a person who works very hard at trying to help investors and traders learn how markets really work. Am I right all the time? Absolutely not, nobody in this business is right 100% of the time. Do I try hard to get it right? Absolutely.

    As for restricting free speech I think you're barking up the wrong tree as we posted your post. What we don't allow on this blog is bad language and derogatory comments.

    I wish you every success in the future.

    Adam

  3. When the S&P finally rolls over, will we get a video about how Adam was actually right only 10 months later??

    Reminds me of boy who cried wolf. When the S&P finally does start to roll over, will we be able to listen to the same story and take it seriously? and ride it down to test the lows?

    I have a feeling that since Adam severely restricts free flow of speech here, that this post will never see the light of day.

    So much for the constitution and any criticism of the King. (He can't take it)

  4. Don,

    Thank you for your feedback.

    If you take a look at our trade triangle technology you will see that we are presently on the sidelines on the major indices. Our monthly trade triangle remains positive as it has done since March. Our weekly trade triangle signaled a move to the sidelines and that is where we are presently.

    As you know individual stocks act individually. This is the case with Garmin as its trend based on our trade triangle technology is negative.

    I hope this addresses your question.

    All the best,

    Adam

  5. Adam, while all of this banter is interesting, the fact remains, Cramer has us buying when the smart money is selling most of the time.

    1. That may well be true. I guess a study would be necessary. But in this case Adam called out Cramer specifically for not making a call that Adam made in November. And the "banter" is about the fact that Cramer was right in November, and Adam was wrong. If Adam wants to lay out some other cases where he was right and Cramer was wrong, or even late, then that's fine, and I doubt you will see so much "banter" about those.

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  8. C. Weingartner,

    Thank you for your feedback.

    Actually if you know anything about our "Trade Triangle" technology we got short in GARMIN at $32.32 on February 1st.

    If you'd like to learn more about our "Trade Triangle" technology you can take a 30 day risk-free trial to MarketClub.

    Here's the link: https://secure.ino.com/products/marketclub/

    All the best,
    Adam

    1. So, where does the "3 months late" come in? It's only a few days between your trade and Cramer's show. If you didn't short it at 27 in November, why would you have expected him to recommend shorting it at 27 in November? That would have been a good time for a green triangle, to ride it up to 37 in January.

      1. John,

        The purpose of the headline was to indicate that we had a monthly trade triangle signal. This trend change signal indicated that Garmin was headed lower. Since that original signal we have had another signal to cover that position and another signal to reinstate the short position at $32.32 on 1 February.

        I was merely pointing out that MarketClub's trade triangle technology was indicating problems for Garmin long before it came on Cramer's radar.

        All the best,
        Adam

        1. First, how do you know when it came onto Cramer's radar? He might have been watching it longer than you, and only decided to publicize his thoughts recently.

          Second, I gather then that your triangle in November that you later covered resulted in a losing trade. Funny that part was not disclosed in the headline.

          If Cramer was watching and decided not to short it in November, would not that have been a more successful strategy?

          So, as of today, who is ahead, the triangles or Cramer?

        2. John,

          Thank you for your feedback again.

          I don't want to put too fine a point on this and go back and forth about who said what when. That is not the purpose of this blog.

          I would put MarketClub's trade triangle technology up against anyone in the world including Mr. Cramer. Our approach is methodical and market proven.

          You are correct there was a loss before the last trade, but if you watch the video you can see and hear that I did not refer to any of the numerous profits that were made using our trade triangle technology.

          Time to move on.

          All the best to you.
          Adam

  9. I am no Jim Cramer fan. That said, correct me if I am wrong but, it looks like Cramer's call was better. You got people out at 27.06 and Cramer was getting people out and to a short above 30. ??

    1. You're absolutely correct, Adam is hoping no one will look at the actual graph of GRMN, did nothing but go up after Nov 4, and get sucked into his system apparently. J Paul Beam

      1. J.Paul,

        Thank you for your feedback. I am not sure I fully understand your comments about getting sucked into a system. I'll do my best to interpret your feedback regarding Garmin.

        The major trend for Garmin is down according to our monthly trade triangles. You are correct that we did have a major sell signal and the market did in fact rally afterwards. That is the major reason why we filter our trades using our weekly trade triangles. Our last signal to the short Garmint was on February 1st at $32.32.

        As we have always stressed on this blog and our many videos that we have created for investors and traders, diversification is important and trading with a game plan is equally important.

        I hope this addresses your question in a satisfactory manner.

        All the best,
        Adam

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