Cramer's Morning Take: Apple, Broadcom 4/9/25

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Jim Cramer (1:00)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. I'm going to say something that maybe I can regret, but I look at the companies that have the most fresh news flow. That's how I like to do it. And the freshest ones were Delta and Walmart this morning, and they're reacting positively. That matters to me, because everyone's focused on the tenure, which I think is right to focus on, but it actually hasn't been nearly as volatile as the chicken little people have said. The companies that could be hurt the most by China when they're tariff, the number one would be Boeing, and Boeing is up big. So what I'm saying is, when you have an Apple doing well, a Broadcom, these are two companies be hurt by China, these companies are doing well. And what this says to me is some people are saying, yeah, no kidding, don't you understand?

These companies have been punished day after day after day, and now everybody knows it. You don't sell when everybody's been punished, you buy. That's what I'm saying.

Jeff Marks (1:58)

I think that's a great point. Things were deeply oversold. The oscillator minus 10.62 after yesterday.

Jim Cramer (2:06)

And how is that, when it gets there, what has been the next 10, last 10 times what's happened?

Jeff Marks (2:11)

The people at Market Edge sent over some great historical facts around it. So in the last 17 years, the oscillator has hit minus 10, 12 times.

10 of those times, the S&P was up 30 days later. Now, there were two exceptions. 2011, that was the debt ceiling crisis, and then the COVID crash. Both saw the oscillator get a little bit lower in 2011 It bottomed at 11.75. So not too far from here. 2020 was a unique situation. The oscillator got as low as 24.36. But if you look at all the 12 events, you average them out, the S&P was up 30 days later on average 2.57 percent. So what that says to me is that you just have to be a little constructive here. I know yesterday was a nasty rehearsal.

Jim Cramer (2:53)

It's so hard to be constructive. But maybe that's when you have to be constructive. Yeah. I want to take my cue from the stocks that are in the blast zone because they're the ones that should be signaling that we're in trouble. I spoke to so many people last night who are short apple. And I say, oh, and it don't trade it. But we're going to have to go through tough times. And I come in here, and there's one stock that I expect to be trading at 165 And it's up 5 And that's a monumental move, a 3% move for this. Then I look at Broadcom. And I say Broadcom, 38% of its business pre-VM, VMware.

Jeff Marks (3:32)

Yeah, so it's much smaller now.

Jim Cramer (3:34)

Now it's down 11 But Broadcom is clearly associated with China as is Micron. All sammies. Yes, and I look at Broadcom, and I say to myself, how much is Broadcom going to be down? And Broadcom is not down. And then you have the $10 billion buy back that's going to be done by this year, with Hock Tan speaking to major institutions. You say to yourself, wow, maybe I'm on the wrong side of that one. Maybe I should be a buyer. Those are two stocks that are some of the most heavily shorted stocks, with very smart people telling me, Jim, will you stop presenting that this is a good opportunity? And I come back and say, it's down 31%.

When it was unchanged, it was a bad opportunity.

Jeff Marks (4:13)