CNBC’s Jim Cramer said Tuesday that he remained cautious about the shares, but stressed that he is not giving up on the bullish market.
“I’m not a bear. I’m neutral at the moment. I just hope I have something to hang my hat on before I pull the trigger,” the Mad Money host said.
“Many inexperienced players in this market continue to confuse my caution with the belief that the entire market is heading downwards. I just want to lessen the chances of the stock market being hammered” after buying a stock, Cramer said.
Broadly speaking, Cramer said his hesitation stems in part from the fact that he is unsure of whether three big blasts – rising inflation, the delta variant of the coronavirus and a change in Federal Reserve policy – have been really resolved in the short term.
“Is [the Fed] really waiting? “Cramer asked rhetorically.” I thought they were on hold because of concerns about the delta variant. If Covid reaches its maximum, there is a possibility that they may talk about tension again, even as I know [Chairman] Jay Powell would rather not. Unfortunately, the data can make it difficult, unless inflation has peaked, in which case the Fed is no longer a problem. “
“Here’s the problem: I have no conviction about any of these scenarios. They are possible,” Cramer acknowledged. However, Cramer said he has “no idea” whether they are likely, which takes into account his cautious view this month.
September is a historically tough month for equities, a fact Cramer has consistently pointed out in recent days as the market has had problems. The Dow Jones industrial average has fallen 2.2% this month, while the broad S&P 500 and the high-tech Nasdaq Composite have fallen more than 1%.
As for when the time may finally come to buy, Cramer said he will look for times when stocks don’t slow down with bad news and yet don’t fall the next day, when that same bad news is highlighted by income analysts variable.
“That does indicate that the pain is over,” he said. However, we may have to wait until the second week of October, when the period of maximum seasonal pain ends … “Cramer added.” Finally, let’s say, we need action to stop suffering big falls on anything. “