If in doubt, do nothing. That was Jim Cramer’s advice to his Mad Money viewers on Friday. We are at the end of a weak moment for stocks, Cramer explained, and that means investors shouldn’t be trying to be a hero when earnings season kicks off next week.
Cramer’s schedule for next week started on Monday with the box office numbers for No Time To Die, the latest James Bond film. When ticket sales go up, expect AMC Entertainment (AMC) – Receive AMC Entertainment Holdings, Inc. Class A Report also get up.
On Action Alerts PLUS, Bob Lang and Chris Versace explain why they left their positions at American Eagle Outfitters (AEO) – Get the American Eagle Outfitters, Inc. report and Facebook (FB) – Receive a Class A report from Facebook, Inc. this week, what they think of the job data and what they expect from next week’s bank profits. Check out their latest trading strategies and investment ideas.
Next, on Tuesday, Cramer will contact Fastenal (FAST) – Receive the Fastenal Company Report Read how the industry is dealing with cost inflation.
Wednesday marks the start of the winning season with JPMorgan Chase (JPM) – Get the report from JPMorgan Chase & Co. (JPM), BlackRock (BLK) – Get the report from BlackRock, Inc. and Delta Air Lines (FROM) – Get the report from Delta Air Lines, Inc. Reporting. Cramer believed JP Morgan was up ahead of earnings but was bullish on BlackRock and Delta.
There will be a number of bank wins on Thursday, including Morgan Stanley (MRS) – Get Morgan Stanley (MS) report, City group (C.) – Get Citigroup Inc. report, Bank of America (BAC) – Get the Bank of America Corp report and Wells Fargo (WFC) – Get Wells Fargo & Company Report, along with Cramer fav Domino’s Pizza (DPZ) – Get the report from Domino’s Pizza, Inc. and Walgreens Boots Alliance (WBA) – Get the Walgreens Boots Alliance Inc report. Cramer liked all finances and Domino’s, but he expected Walgreens to be awful.
Get more trading strategies and investing insights from contributors for real money.
We’ll finally hear from Goldman Sachs on Friday (GS) – Get the Goldman Sachs Group, Inc. (GS) report, warned a stock cramer not to chase higher, and JBHunt (JBH) , the third largest freight forwarding company in our country, which should be able to shed some light on the truck driver shortage.
In a special interview, Cramer reached out again to Ryan Petersen, founder and CEO of privately owned Flexport, for an update on the global shipping industry.
Petersen said there are currently 51 ships anchored in US ports waiting to be unloaded. And while that number is lower than the high of over 70 a few weeks ago, it’s not where it should be.
Many people envision a global supply chain that is filled with technology and super efficient. Petersen noted, however, that it relies largely on old-fashioned ways of working. And while Flexport has technology that can dramatically improve efficiency, we have a complex, systemic problem that is bigger than a company can solve.
What is needed to solve the problem? Petersen said infrastructure improvements would certainly help in the long run, but what we need to worry about right now is the upcoming Christmas season, which is only 78 days away. Retailers need their goods on store shelves, not in containers.
When asked why ships couldn’t simply call at ports on the east coast like Philadelphia, Baltimore or Richmond, Petersen noted that the longer journeys were actually less efficient than even the delays in unloading. Also, many ships are too big to fit through the Panama Canal.
Outside of normal readings
In the “Off The Charts” segment, Cramer circled back to colleague Larry Williams to see what the seasonal patterns of the market have in store for us next. Viewers may recall that Williams accurately predicted the September swooning that goes on like clockwork from mid-September to October each year.
According to Williams’ analysis, the market should be ready for a rally by the end of October. This pattern was observed almost every year from 1923 through 2020, Williams noted. Analysis of the market cycle forecast confirmed that a rally is likely.
So when should investors buy in? According to Williams, buying on November 1 and holding it for six days is a pattern that has worked for 30 of the last 31 years while making some of the biggest gains.
In his “Homework” segment, Cramer was chasing a stock that baffled him on previous shows. He said that Element Solutions (IT I) – Get the report from Element Solutions, Inc., formerly known as Platform Specialty Products, is a specialty chemicals manufacturer whose business has gotten much better in recent years.
Platform Specialty started out as a roll-up aimed at making many acquisitions and capitalizing on the synergies. However, Cramer said the company has been divesting a few areas in recent years to focus on electronics and industrial chemicals, as well as the oil and auto industries. The result is improved organic growth.
Cramer said he’s also a fan of how Element Solutions cleaned up its balance sheet and even introduced a dividend for shareholders. He blessed having this once-forgotten company.
Intervening for the infrastructure bill
In his “No Huddle Offense” segment, Cramer applauded Secretary of Commerce Gina Raimondo for her efforts to secure $ 52 billion in the infrastructure bill for the construction of new semiconductor foundries.
The US was once the world leader in semiconductor manufacturing, but after decades of outsourcing, our country has fallen miserably behind and is now indebted to Taiwan, Malaysia and other countries. The auto industry has already lost billions to a semiconductor shortage and it is a national security issue, Cramer said.
Raimondo knows the gravity of this problem, said Cramer, and that is why she is pushing to raise the funds we need to solve this problem and put the US back into a leadership role.
Here’s what Cramer had to say about some of the stocks callers offered during Friday night’s Mad Money Lightning Round:
Logitech International (LOGI) – Get the report from Logitech International SA: “You’re doing a great job, but put it down and find a floor.”
Clear group (LCID) – Get the Lucid Motors Report: “I think Ford Motor (F.) – Get Ford Motor Company report is better than Lucid right now. “
LivePerson (LPSN) – Get the LivePerson, Inc. report: “You have lowered the lead and therefore it cannot be increased.”
NovoCure (NVCR) – Get the Novocure Ltd. report: “This is a wild act. But I am not afraid of it.”
Modern (MRNA) – Get the report from Moderna, Inc.: “Everyone loved this one, then it peaked. We’ll have to wait for it to come down.”
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