Cramer's Morning Take: Overbought or Not? 7/10/23

SPEAKER_1 (0:00)

What do you see on the horizon for financial markets?

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Jim Cramer (0:33)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting.

Now, stocks are moving pretty well here.

Other than the last 15 minutes of Friday's session, it looked good too. Now, it caused Jim Grant to come on this morning. I know Jim for a very long time. He's a bond enthusiast saying that we may be in stagflation. I'm not buying that at all. I'm saying that in order to be able to get to lower inflation, you have to see slower job growth. But I wrote a piece this weekend which just said what they really want to see is rollback. And rollback's very hard, Jeff. So I point out, he's using a cream cheese story, but the Mannheim index indicates there is some rollback to use cars.

Jeff Marks (1:15)

Yep, good to see. And this all sets up ahead of CPI, of course, on Wednesday. But turning to the market today, it's a little bit of a mixed picture. You have some of the mega cap tech names, a little bit lower. Industrials are rallying. A lot of China stocks up big as well.

Jim Cramer (1:30)

As if these meetings actually are working. The Yellen meeting is being perceived as very positive.

Jeff Marks (1:36)

You know, many industrials have had a very nice move. They've got, a lot of them have caught up to the broader market rally this year.

Use Caterpillar, for an example.

Jim Cramer (1:46)

Really just, what, 35, 40 straight points, where I think you and I have to actually debate whether we want as much cat as we do.

Jeff Marks (1:54)

Yeah, and it's a good question because we were buying it, we started a little too high, but bought it all the way down into the teens area, now up on the average position. Consider it somewhat of a core name, but is it worth trimming around a core position if it's had a nice move, which you can see, it did have a little bit of a pause here, but the trend has been straight up almost in the last month.

Jim Cramer (2:19)

People have to understand, when I come in with Jeff, I mean, we don't necessarily have the same voice. I come in and I say, you know what, I'm looking at Caterpillar and I see that it's run so much that I now worry about it giving back, but at the same time, I think Jeff can point out, look, it's a winner, and you're not supposed to sell winners.

Jeff Marks (2:40)

No, but I also, to your point, I do think it's also a sin to give back gains. Of course, we've seen that in other points in the other stocks in the portfolio that we can talk about too, but to your point, I think it's, you don't want to give back the gain. It wouldn't hurt to trade 20 shares.

Jim Cramer (2:57)

Yeah, I felt like I just, after the quarter for Constellation, it continued to go higher. And then I start thinking, what happens if Bud Light has one up week? Would that give back the gain?

I feel we're in a tenuous moment in that we're still overbought. I worry about the CPI this week. I worry about earnings, and I don't want to give up gains that are hard-fought gains that we have.

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SPEAKER_4 (3:34)

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