Cramer's Stop Trading! Is Obama's Honeymoon Over? (1/7/09)

Stocks discussed in Cramer's Stop Trading! TV program, Wednesday January 7.

Monsanto (MON), Dow Chemical (DOW)

The fallout from the infamous Madoff Ponzi scandal continues, and Cramer thinks many more people could be implicated in the crime. Moving to oil, Cramer considers Exxon a “tell” stock for the sector, since it peaked prior to oil’s fall from $147. The fact that the stock closed down 1.4% may mean that crude has finished its climb.

Cramer praised BB&T Capital Markets analyst Frank Mitch for his call on Monsanto which is up 13% and called him “the chemical analyst.” However, he added Dow is just not keeping pace.

Concerning the economy, Cramer says the market is overbought, but there is some room to be positive. The Obama honeymoon seems to be ending as many people realize that the President-Elect’s stimulus plan “does not seem to be what we are looking for.”

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Comments

[Guero:]

Monsanto's doing well right now because of high demand for "Roundup" herbicide in S America. However, apparently one of the main ingredients in that delightful little cocktail is a phosphorus derivative named glyphosate. It just so happens that the world is starting to run a little short on phosphorus, so the Monsanto Roundup party may be a little short-lived.

Besides, haven't the Brazilians just about defoliated the Amazon by now?

Jan 09 09:42 AM

[anopenmind:]

Another possible reason Monsanto is performing; Ag's in general. Jan 9 WSJ "Stocks in the News" and "The Good News". Of four listed, Deere +5.9% Thurs close, and note "Bernstein Research said the farm-machinery firm should perform well this year and next, predicting the market for agriculture products will be stronger than expected". Well, perhaps "experts" expecting people to stop eating? If Deere is to do well, why not Monsanto, POT, MOS, others?

Jan 09 12:34 PM