“Cramer’s view of market direction through yearend is dictated by politics and the outcome of the November midterm elections in which he says Republicans need to regain control of Congress and create the divided-government scenario that proved so salubrious to the market following the 1994 elections. “If Republicans prevail, we could see a 30% gain in the stock market, like the 37% move when it happened to Clinton,” says Cramer. “If the Democrats keep both houses you can’t buy enough SPX 1100 puts,” he adds, noting that a test of 9300 on the Dow would likely follow a successful defense of legislative hegemony by the Democrats,” John Dobosz Reports From Forbes.
Dobosz goes on to say, “Cramer has a soft spot for hard assets in his portfolio. “I am an unabashed believer in gold,” he says. “Gold can go to $2,000 in the next few years, and I’m not talking about 2020.” The “most bullish factor” for gold is that “we’re running out,” says Cramer. “There are no more big discoveries in the world,” says Cramer, adding that the next two months are traditionally bullish for gold because of jewelry demand in India and China. Buying the SPDR Gold Trust (NYSE:GLD) is Cramer’s preferred way to play the metal’s strength and he recommends the October 116 call option to capture the seasonal upsurge. His recommended miner is Agnico-Eagle Mines (NYSE:AEM) and he suggests the November 55 calls.”
“Pointing to both the possibility of a war in the Middle East or just voracious demand from China, Cramer says crude oil will hit $100 within the next year. “My favorite integrated oil is ConocoPhillips,” says Cramer, who smiles on the 3.9% dividend yield. More speculatively he likes Weatherford International (NYSE:WFT), which he calls “the cheapest oil driller by far.” A land-based driller with no exposure to the Gulf of Mexico, Cramer says it could “reasonably go up 30%” or the $11 billion (market cap) company could be takeover bait. In natural gas, Cramer likes the “hated stock” Chesapeake Energy (NYSE:CHK). “The enterprise value of this $20 stock is about $28,” he says. Give yourself some time, Cramer urges, and pick up the in-the-money January 15 calls. One catalyst for higher natural gas prices is the possibility that Congress may authorize rebates for trucking companies that buy engines that operate on natural gas. Engine maker Westport Innovations (NYSE:WPRT) and alternative fueling station outfit Clean Energy Fuels (NYSE:CLNE) would also benefit,” Dobosz Reports.
A nice big fat Cramer disclaimer: “If the Democrats sweep in November I disavow all long positions.”
Here is a quick snapshot on the SPDR Gold Trust (NYSE:GLD) below:
SPDR Gold ETF (NYSE:GLD) Visit Our (GLD) Category: HERE
The investment seeks to replicate the performance, net of expenses, of the price of gold bullion. The trust holds gold, and is expected to issue baskets in exchange for deposits of gold, and to distribute gold in connection with redemption of baskets. The gold held by the trust will only be sold on an as-needed basis to pay trust expenses, in the event the trust terminates and liquidates its assets, or as otherwise required by law or regulation.