Jim Cramer reveals 7 stock market concerns going into earnings season


CNBC’s Jim Cramer on Tuesday revealed he not too long ago trimmed holdings in his charitable belief forward of earnings season as he grows extra involved about potential market headwinds.

The fund, ActionAlertsPlus.com, trimmed roughly $100,000 from its holdings partially due to the problems, he stated.

“I’m not a bear, but there are legitimate concerns here, which is why we sold a bunch of stock for my charitable trust on the eve of that conference call I gave last week,” he stated on “Mad Money.” “This market can handle one or even two of these potential problems, but it can’t handle all of them.”

Cramer laid out seven concerns that he has. Below are key takeaways which can be driving his ambivalence:

Earnings outcomes

“This week we have bank earnings and those stocks have run so much that their numbers need to be borderline perfect,” Cramer stated. “Call me concerned that this red-hot group could hurt the tenor of earnings season.”

Inflation

“I think [Federal Reserve Chair] Jay Powell is right that the current inflation spike is transitory,” he stated. “I don’t think we’ll have to tighten any time soon because of inflation, but I’ve been wrong before, and this is a legitimate concern even as the consumer price index numbers this morning don’t seem all that worrisome.”

Stock glut

(*7*)_blank” href=”https://www.cnbc.com/quotes/COIN” rel=”noopener”>Coinbase] sucking money from everything else,” Cramer stated. “Too much supply, too many questions, not enough discipline.”

Covid-19

“We’ve gotten complacent about Covid,” the previous hedge fund supervisor stated. “I do know individuals are sick of quarantining, and vaccinations — save [Johnson & Johnson] — [are] going fairly effectively, although we’re not out of the woods.”

S&P oscillator

“We are indeed overbought on the S&P oscillator that I swear by,” he stated. “We’ve had an incredible run, and I’d feel much, much more comfortable if we follow that up with a gentle decline rather than some sort of cliff jump. The longer the market stays overbought, the more worried I get.”

Semiconductor scarcity

“These shortages really do worry me, especially the semiconductor shortage. Without chips, there isn’t anything most manufacturers can do to boost production,” Cramer stated.

Foreign coverage

“We have a new president and it feels like everyone, from Iran to North Korea to Russia and even China, wants to test his resolve. I’m most worried about China, which seems determined to show Biden that it doesn’t want to hear anything about human rights or it will make a move on Taiwan,” he stated. “To me, this potential flashpoint is the most dangerous storyline in the world right now.”