CNBC’s Jim Cramer told investors on Friday to expect more negativity in the market as stocks enter a seasonal period of weakness in September.
The host of “Mad Money” warned of the key date of September 17, marking an inflection point after which stocks have historically seen a significant decline.
“You may need to do some shopping if there is a serious drop in the next ten days,” Cramer said.
Cramer laid out several key events in the coming days, including his prediction for the “most positive thing” for the week ahead.
“Remember negativity… is good for bulls, not bad. A negative market is a market that is easily impressionable,” Cramer said.
Here’s Cramer’s game plan for the next five trading days:
Monday: Lennar results, Evergrande developments
“I’m particularly sensitive to what they have to say about housing shortages and demand for housing,” Cramer said, noting that Lennar could give key insights into retail, banking and even the economy of the city. Work at home.
The host will also monitor any new development with Chinese real estate giant Evergrande, which is on the verge of collapse under crushing $ 300 billion in debt.
“I can’t stress enough how colossal this business is. It almost certainly needs (…) government intervention to stay afloat,” Cramer said.
“If Evergrande collapses, you have to hope that the fallout stays in China and doesn’t upset our own institutions. Yes, this business is so big,” the host added.
Tuesday: FedEx and Adobe results, Workday analysts meeting
Tuesday brings the income reports of FedEx and Adobe.
FedEx “has received a ton of negative comments about this that tell me that anything good will drive the purchase,” Cramer said.
As for Adobe, the host called the stock “a real indicator of the technology group”.
“Inventory has been on fire for ages, as it should be because business is booming. They are now an integral part of e-commerce and I love their suite of products,” Cramer said of Adobe.
Cramer is also overseeing an analyst meeting hosted by Workday.
“President and co-CEO Aneel Bhusri wouldn’t be hosting one of these gatherings if he didn’t have something good to reveal,” Cramer said.
Wednesday: Federal Reserve statement, briefing from Fed Chairman Powell
The The Federal Reserve is holding its much-anticipated meeting in September with the two-day session ending with an announcement Wednesday afternoon followed by a press briefing with Fed Chairman Jerome Powell.
“This is a seasonal negative moment. I think we should expect the market to put a negative spin on whatever it says,” Cramer said.
Investors will be looking for clues as to when the central bank will begin to reduce its accommodative monetary policy in the era of the pandemic.
“I expect this meeting to cause another wave of sales because there is just too much worry about a slowdown and too much inflation worry to be able to get through this without a lot of sales,” said the host.
Thursday: results from Costco, Nike and Darden restaurants; Dell Analyst Meeting
A lot of large companies are releasing their quarterly results on Thursday.
“It’s a company that gives you monthly numbers, but the ignorant always expect some kind of upside surprise and then they sell the stocks when they don’t get it,” the host said. “Unless they announce a special dividend or a price hike for their membership program, I expect the ignorant to sell Costco.”
Consumer giant Nike also announces its results.
“We keep hearing that its supply chain is in tatters in part because it sources 50% from Vietnam. In addition, some people are concerned that Nike is the next product the government is against. Chinese attacks, ”the host said.
The Darden Restaurants earnings report could provide some insight into the effects of the delta Covid variant, Cramer noted.
“The Olive Garden parent can give us a clear picture of what the latest outbreak is doing to the economy. I trust them to say things are better but not perfect,” Cramer said.
Dell is hosting an analysts meeting on Thursday, which Cramer says could be a bright spot for the week.
“If you were to ask what could be the most positive thing about this whole outfit next week, it would be this,” Cramer said.
Powell is expected to speak at Friday’s Fed Listens event.
“Hopefully he doesn’t have to give us some sort of overhaul of something he said on Wednesday. He has an encouraging story to tell: Once Covid takes its course, supply chain issues could disappear, ”Cramer said.