Cramer's Morning Take: Government Shutdown & Auto Strikes 9/27/23

SPEAKER_1 (0:00)

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Jim Cramer (0:28)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting.

One of the things I don't ever like, Jeff, is buying when the futures are up. You have to wait till they're down, and given the fact that the oscillator is now at minus five, we are probably gonna get a chance if one thing, any number, oil goes down, rates go down, you will see a short squeeze and cover. But one of the things, I mean, by the way, the 10-year, the most short it's been in history, thank you, Carl Igarna. So you can't buy it initially. You have to have a retest, and that's what's happened.

Jeff Marks (1:09)

Right, yeah, we often say you can't trust that up open. Why? Well, a lot of people that bought the low yesterday could come in, traders, and just quickly sell the open for a quick little profit. Scalpers, as you like to call them. But we do have the 10-year, and then when we saw the 10-year yield start to moving up, move up that also we saw the reverse action in equities starting to pull back from the morning's highs. You know, a lot going on, energy up a couple dollars, good for those stocks. Jim, any thoughts around Pioneer, Cotera?

Any thoughts around government shutdown? Is that weighing on things?

Jim Cramer (1:43)

Okay, so, the two things that I am now desperate to count on about what could drive economic activity down, are the government shutdown and an escalation of the auto strike. And President Biden was out there doing something that I actually regarded, I was a member of two unions, always been very pro-union, but never thought that a president would go and not try to settle the strike, but actually just go and go with conceivably the 40% increase, which would be detrimental to our Ford, we'd have to sell it. So I look at the expansion of the strike and the government shutdown as a possible reason why this goes higher, because all this is about, all of this is about one thing, which is the tenure.

So you don't have, you take out a big chunk of economic activity, then interest rates will drop.

Jeff Marks (2:34)

Okay, so almost like a bad news is good news in terms of yield?

Jim Cramer (2:38)

We need ultra bad news, because the durable goods orders are strong, the case shiller numbers for housing back to July. And by the way, most of the housing companies think that the price of housing is gonna increase.

Lenore's no, because Lenore said there's been overbuilding in apartments.

Jeff Marks (2:54)

So bottom line, don't fret a government shutdown.

Jim Cramer (2:58)

Especially if it's always very temporary. A government shutdown could be very good for the market. Now I know that that seems counterintuitive, but remember, we need some cessation in economic activity, we need some unemployment. Now, I hate to have it done that way, it's completely foolhardy, it makes us look like idiots.

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