Cramer urges patience with the market: ‘It doesn’t make a lot of sense to get in after the run’
Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s key moments. Stocks mixed Crude higher PANW downgrade 1. Stocks mixed The major U.S. stock benchmarks were mixed Monday, as the tech-heavy Nasdaq Composite climbed 0.4% while the Dow Jones Industrial Average dropped 110 points, or 0.3%. The S & P 500 was trading at a nine-month high, as shares of Club holding Apple ( AAPL) soared to an all-time high ahead of the expected unveiling of its mixed-reality headset. The moves came as investors digested Friday’s rally, which saw all three indices finish roughly 2% higher for the week. Jim Cramer said Monday that investors should be patient with the market here. “After a big run, suddenly people start embracing a market. I don’t like that,” Jim said. “I like to go the other way, because it doesn’t really make a lot of sense to get in after the run.” 2. Crude higher Oil prices rose Monday after Saudi Arabia announced plans to voluntarily cut production by an additional 1 million barrels per day starting in July. Global oil benchmark Brent crude and West Texas Intermediate , the U.S. oil standard, both advanced roughly 1% Monday morning, to around $77 per barrel and $72.60 a barrel, respectively. However, Saudi Arabia’s decision to reduce output isn’t changing our outlook on sitting tight when it comes to the Club’s oil stocks. “I don’t think there’s any reason to just say, ‘Oh, now there’s a chance to buy’…I just don’t like that,” Jim said. 3. PANW downgrade We downgraded Palo Alto Networks (PANW) to a 2 rating Monday , meaning we would need to see a pullback in the stock before adding to our position. It doesn’t make sense to chase the stock when its climbing Monday on news that the cybersecurity firm will be added to the S & P 500, effective June 20. Shares of Palo Alto set a fresh intraday all-time high Monday, climbing more than 5% to trade around $228 apiece. The stock is up more than 61% year-to-date. We’ve said for months that PANW would pop once officially added to the stock index, and built our position ahead of that catalyst. At this point, we think moving to the sidelines with a 2 rating is prudent. (Jim Cramer’s Charitable Trust is long AAPL, PXD, PANW. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
