Detour After Markets’ 5-Week Win Streak, Bitcoin Hits 20-Month High, Gold's Record Run 12/4/23

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Carl Quintanilla (0:31)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. David Faber has the morning off. As they said on Squawk, stocks coming off five straight weekly gains, longest streak for the Dow in almost two years, but futures are backing off ahead of a busy week, including a jobs number on Friday. A roadmap begins with stocks on that tear. Fed Chair Powell says any talk of rate cuts is premature. Bitcoin 20-month high, gold at an intraday record today, and Uber shares up 5 percent. Company is set to join the S&P 500 in a couple of weeks.

Let's begin with the markets, Jim. What do you think the reticence is about today?

Jim Cramer (1:14)

Well, I think there's, let's say, incredible speculation whether Bitcoin, gold, and I think that scares people. I think people say, you know what, maybe we're overdone. We have had such a huge rally, Carl, so I think that anybody who thinks that we can just continue just because we have momentum has to take pause. When you hit Bitcoin hitting 40,000, 41,000, what happens is that people say, whoa, 42,000 overnight?

Too crazed, it's too crazed.

Carl Quintanilla (1:45)

So it's the fear of speculation returning to the market and then the possibility the Fed would have to react to that?

Jim Cramer (1:51)

Yes.

Now I think that the Fed doesn't want to, look, why tip your hand? But at the same time, Carl, it is so worrisome to see gold so high and to see Bitcoin so high, they are signaling that rates are gonna drop to one, two. And there's the Fed saying they're not gonna drop at all. So there's this disconnect. And the disconnect is making it so people feel, whoa, I don't know where stocks are, but they're too high momentarily.

I follow this S&P oscillator. It's plus seven. It's the most it's been in ages. So I just say, let it cool down. Just don't be aggressive here. We are selling for my travel trust.

Carl Quintanilla (2:34)

You are?

Jim Cramer (2:35)

Yes.

Carl Quintanilla (2:36)

Trimming everything or?

Jim Cramer (2:38)

No, we just feel like we're 9% cash. I'd like to be 10, 11% cash. I just feel like there's just too much risk. And I don't want a year end to lose some, you know, what turned out to be a pretty good year.

Carl Quintanilla (2:51)

Right. Kind of fits with what, at least Mike Wilson is weighing in with again today, that December is going to be a bit treacherous.

Jim Cramer (2:59)

Right, but he did use the term soft landing. I mean, he had to parse his headline.

Carl Quintanilla (3:04)

Yes.

Jim Cramer (3:04)

But I just feel like there's going to be volatility and I just, I don't want to be part of it.

I mean, look, everybody has gains. Mark Zuckerberg has gains, taking some profits. Yeah. I just think that, I am aghast that you could have Sam Bankford, Sam Bankford, he is, it looks like successful prosecution.

That has caused this thing to almost be free of corruption, so to speak, and it's become what the younger people involved, you saw Robin Hood stock up today. And I just think that in the crossfire of mega, mega seven, crossfire of what was supposed to be a broadening rally, it's shrinking. And I just didn't expect this.

Carl Quintanilla (3:50)

That said, a lot of constructive comments about fundamentals over the weekend, Ed Yardeni, wages and salaries in October record high, employment record high, services beginning to crack, rent inflation beginning to moderate, the backdrop hasn't changed for you, has it?

Jim Cramer (4:05)

Well, I just think that those are all things to say the Fed will eventually have to cut, but isn't gold saying the Fed's gonna cut now? I mean, you don't buy gold unless you think that rates will retune one and 2%.

I have no idea what crypto's saying other than, look, don't trust anything other than crypto. I want something which says we're fine, of which the ones that do say that is GM. GM get upgraded, but that's good. I don't mind that at all. But, you know, and I like what Yardeni said, but I still think that I can't believe I'm agreeing with Wilson.