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Tuesday, March 28, 2006

March 28th

Cramer's first pick was SFD Smithfield Foods Inc.. This trades on the NYSE so I can't trade after hours. I will keep my eye on it, but this wouldn't be something I would normally consider shorting.

Something really funny I noticed too. during Cramer's first pick, he was talking about pork (the meat) and thats when he picked SFD. But on the caption below it said PORK in caps like it was a stock pick, but it wasn't. The stock shot up $1.51! Then when people realized it wasn't a pick it went right back down. So much for Cramer's begging for people to stop buying after hours without doing their due dilegence! People are buying stocks that he isn't even mentioning!!!

The second pick was OO Oakley Inc. Cramer really played with some peoples head on this pick. He started talking about it and it almost sounded like he was joking and was just doing a lead into another pick. If you look at the 30 minute chart right when he mentioned it you can see. Normally there is one big jump up, followed by a more normal trading range. This one went up a little, then a bunch more, then came down big and then back up. After all this, it trades on the NYSE, so I can't trade after hours (or premarket) so I like to stay away from these. Also of note, this one barely went above its daily high after the Cramer mention (only .28 cents above sor far).

Cramer later went on to talk about cheap natural gas plays. He picked 5 stocks and said they are all on "sale". I wouldn't short when he picks a basket of stocks like this since who knows which ones people may pay up for. Secondly, I don't think shorting natural gas is a good idea because on any given day natural gas could go up in price (I know since I am long CHK) and determine the stock price and take away the control from the Cramer buyers.

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