Cramer's week ahead: 'I need you to expect some brutal days ahead'
- CNBC's Jim Cramer on Friday warned investors there could be more selling next week.
- "I need you to expect some brutal days ahead and don't get sucked into those morning rallies," the "Mad Money" host said.
CNBC's Jim Cramer on Friday warned investors there could be more selling next week.
"Given the nature of September, you have to expect next week to feel less like this morning's decent action and more like the ugly sell-off of this afternoon even as there might be some individual bright spots," the "Mad Money" host said. "I don't want to be a downer here, but as I keep saying, I need you to expect some brutal days ahead and don't get sucked into those morning rallies."
Here's Cramer's game plan for the next five trading days:
Monday: Tech rally, backlash to Biden vaccine rule, Palo Alto Networks analyst meeting, Zoom conference, Oracle earnings
Cramer said the phone call Friday between President Joe Biden and China's leader Xi Jinping likely lifted sentiment in tech hardware stocks, particularly in the semiconductor industry, because investors want tensions to cool between the world's two largest economies.
He said he'll be watching to see if on Monday there's a broader tech rally. "I fear that September just won't release its bearish grip on the stock narrative that easily," Cramer said.
In general, Cramer said it's a "pretty quiet week" outside of political and judicial realms. However, he said he will be watching to see what Zoom has to say at its all-virtual conference.
"Zoom needs to show us it can grow aggressively with new products and acquisitions. Without that, I'm going to tell you, I think the stock may even give back its gains that it's had the last couple of days," he said.
Additionally, Cramer said Oracle's earnings after the close Monday are noteworthy, given the company's nearly 39% rally so far this year. "That's soaring much faster than its growth rate," he said. That might not matter though. It's got a halo after years of being in the doghouse; the halo comes from its inexpensive nature versus its incredibly expensive colleagues.
Tuesday: Crocs investor day
Shares of Crocs are up 130% year to date, and while Cramer said that may seem extraordinary on its face, it's because the shoe maker has "consistently beaten the numbers."
"Why? How about we find out when the company hosts an analyst meeting. .. I think it's going to be well-attended and cause earnings estimates to be bumped [higher] on the next day," Cramer said.
Wednesday: Cisco investor day
Cramer said he believes analysts' takeaway from Cisco's investor day may be similar to what happens following Crocs' meeting the day prior.
"A Morgan Stanley analyst just downgraded the stock yesterday. Don't you think that's gutsy given that excellent set of orders when it last reported. I bet the bulls win this battle," Cramer said.
Thursday: Yom Kippur, retail sales data
"Yom Kippur, the Jewish day of atonement, falls on Thursday. That is traditionally a day where companies and analysts are loath to do anything major," Cramer said. "But the federal government releases retail sales numbers and if they are weak, you can go blame Covid and buy some stock of Amazon. That's always the default stock to buy, right, when brick and mortar stores show weakness."
Friday: Consumer sentiment reading, Manchester United earnings
The University of Michigan's key consumer sentiment index is due out Friday morning, with consensus forecasts calling for a September reading of 71.3, according to FactSet. August's final reading of 70.3 was a pandemic-era low.
"Have people grown more pessimistic because of a resurgence of the virus? Let's parse the number," Cramer said.
Finally, Cramer said he'll be keeping an eye on the earnings report from English soccer club Manchester United, partly to due to the popularity of the show "Ted Lasso" on Apple TV+.
"I believe that soccer, or football as they call it, could be experiencing a resurgence of interest globally and we lack ways to invest in it. There's no better way than to own a piece of the Premier League's premier team, ManU," Cramer said.
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