Cramer's Morning Take: The (Not So) Magnificent 7 1/3/23

SPEAKER_1 (0:00)

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Jim Cramer (0:31)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. Markets are lower again, NASDAQ week for second day, but not as vicious, which makes sense because you don't have people who are motivated by the fact that the year is over, New Year's begun, and that has historically caused a lot of havoc for a lot of different sectors that have been very, very positive. So far, I would say constructive decline.

SPEAKER_3 (0:59)

Yeah, and I think what's playing out today too, you are seeing a rise in interest rates, and we're seeing expectations of a rate cut in March decrease, and that is hitting that broadening out trade, right? The Russell 2000, small caps, some of the cyclicals that made huge moves in November. So they're taking a backseat today, whereas you are seeing some stabilization in the Magnuson 7 after yesterday's tough declines.

Jim Cramer (1:28)

But let's not forget, what should happen is the Mag 7 shouldn't trade in unison here. For instance, you showed me that great note about Amazon this morning, and how if you want to opt out of ads, you have to pay a little more, and that's a win-win for Amazon because they'll make money from ads, and they'll make money from people who don't want to pay for a reacher being interrupted, and we have a 47-minute great show. And what that says to me is, okay, look, let's look at these stocks as non-7. Apple's got problems, we know that.

We know that when we take a look at NVIDIA, there was a piece that came out last night that was saying it could be a bubble.

SPEAKER_3 (2:08)

Too much hype.

Jim Cramer (2:09)

Too much hype. We know that Microsoft, the copilot, is important, but maybe it's not as important as people might... All I'm saying is that we're going to have to start looking at these on a case-by-case basis, not just on an ETF basis.

SPEAKER_3 (2:20)

Well, yeah, I mean, look, you say too much hype. Sure, maybe, but I think the point is being in that the stock had a more than 200% move last year.

That just means you have to take a little bit off after that type of run just out of discipline in case that it is too much hype. I don't know if it's going to be too much hype. I think they obviously are doing amazing things with their chips, but still discipline matters.

Jim Cramer (2:47)

Right, I want to go back to what we did yesterday. What we did yesterday, when you were looking at that $1, 200 ridiculous piece that made so much money.

SPEAKER_3 (2:57)

The lot that was sold on Nvidia goes back to 2019

Jim Cramer (3:01)

We don't mean to cherry pick, just so you know. We were just talking about how there were gains that were to me outsized to the point where if we didn't take something off, we would be irresponsible, even though I say own it, don't trade it. Look, if you have a big position in Nvidia, and it's up 1, 200%, you probably want to take a little off, but we're not abandoning Nvidia for heaven's sake.

SPEAKER_3 (3:29)

Well, you always say when a stock doubles, start playing with the house money.

Jim Cramer (3:32)

Right, and house money means that you can't lose. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive warning minis every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_4 (3:53)

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