Jim Cramer’s Lightning Round: Buy EMC Corporation

Jim Cramer’s Lightning Round: Buy EMC Corporation (NYSE:EMC), Sell VMware, Inc. (NYSE:VMW)

Posted on Oct 06, 2010

Bullish

Tata Motors Limited (ADR)(NYSE:TTM), Ford Motor Company (NYSE:F), Chipotle Mexican Grill, Inc. (NYSE:CMG), EMC Corporation (NYSE:EMC), MedQuist Inc. (NASDAQ:MEDQ), Allscripts Healthcare Solutions Inc. (NASDAQ:MDRX) and International Business Machines Corp. (NYSE:IBM).

Bearish

VMware, Inc. (NYSE:VMW).

EMC Corp to Consolidate in the Near Future

Date: October 6, 2010
Current Price: $20.08
Target Price: $18.40 and above
Periods: less than 1 months
Confident Level: 4 (1-5)

I believe EMC Corporation will move towards the support of the uptrend line of $18.40 before it resume its rally.

EMC Corporation has been moving up agressively since Aug 27 to Sept 24 -approximately 22 days of rally. It is about time for EMC to consolidate before it moves higher. EMC need to consolidate and move down to around $18.50 to flush down the weak player.

I am not into this stock at the moment as I have invested all my money in DryShips which I strongly believe will double or quadrapple in the next 12 months.

For those who like to buy EMC at least wait until it finishes it consolidation first before jumping in.