Cramer's Morning Take: Market Exuberance 6/9/23

SPEAKER_1 (0:00)

What's on the horizon for financial markets?

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Jim Cramer (0:32)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

I've got to tell you, they came back to tech, and I think it's hard at this point to try to figure out, as we saw this morning from Bank of America, the piece about whether we're having a new bull market that's hated, or are we having a continuation of the old market plowing ahead? I opt for the latter, and I like markets led by tech, because those are the great forces of innovation. That's what we should be looking at.

SPEAKER_3 (1:03)

Yeah, and the reason why everyone's talking, are we in a new bull market? It's because the S&P is now up 20% from the October lows. It is now exceeding the recent 52-week high made on August 16th of last year, so those are the big reasons, but yes, it is still a tech-driven market, has some big price target boosts on Microsoft today. Netflix, Adobe, which is another one that is pushing a lot of stocks. I know you talked about that extensively last night.

Jim Cramer (1:32)

Absolutely, Tesla, Apple Administratives. Now, I want to show people something.

When you have something like this, okay, and this is what Larry Williams, my market historian has been just worried about, we've now had a complete turn, all right?

We should go up. A lot of people now, and this is really important, are getting bullish. A lot of people now. We've been buying all the way here, all right? Now, fortunately, this is one of those cycles that we got right. Sometimes we get them wrong. And we had the right stocks. So it's incumbent upon us, now that the market's overbought, to go the other way. Now, I'm not talking about reverting to lots of cash. I'm saying that if you have a Palo Alto, if you have a Salesforce, if you have a Microsoft, trim.

SPEAKER_3 (2:16)

Right, trim. You mentioned overbought. Yes, the oscillator moved into overbought territory after yesterday's session, 4.37%, anything above 4 Signals overbought. We also have a couple big tests for the market next week, whether it's CPI Tuesday, Fed meeting Wednesday.

Just a couple things to always keep an eye out for because there will be big market moving events. The macro is still really dominating as people try and still debate, is inflation coming down fast enough?

Jim Cramer (2:45)

Right.

SPEAKER_3 (2:45)

The status of the economy.

Jim Cramer (2:47)

Right, and I think that when I get to these points, when I see the oscillator plus four, here's what happens in my mind. Again, we're always trying to share you because you're trying to manage your own portfolio.

I say to myself, two weeks from now, when the oscillator was at plus four, why wasn't I advising people to do some selling? Why was I sticking with the market? And the answer is because I got exuberant. I think it's important to temper your enthusiasm by saying we just had one hell of a route. This is not when you come in.

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SPEAKER_4 (3:38)

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Okay, text from the wedding planner. She's talking about a cake pop mural.

SPEAKER_3 (4:26)

Ah, exciting.

SPEAKER_4 (4:28)

Ooh, it's $8,000. I don't know, we're trying to save for a house.

SPEAKER_5 (4:33)

Well, you only get married once or twice.