CNBC’s Jim cramer wanted to explain how he reacted to the selloff after the stock market crash on Thursday after a small rally on Friday.
“I have to apologize to you: I forgot to panic last night,” said the “crazy money” anchor. “I told you that President trump intends to impose a 25 percent tariff on imported steel and a 10 percent tariff on aluminum… This is not a reason for a wholesale position, and if it does, it may even be a reason to buy. ”
Investors gave and market watchers a lot of panic in the dow Jones industrial average of 500 points and warned people to get out of stocks, Mr. Cramer acknowledged.
“Panic is not a strategy… (even) when many bears seem determined to get you out of the stock at all costs, “he said. “Even if you want to sell, there is always a better time, not a fear and the chaos that leads to a brutal decline.”
So Mr Cramer looks ahead to his weekly game plan as investors play with us trading partners, particularly whether China will retaliate against Mr Trump’s actions.
Monday: revenge, Ryerson Holding Corp.
Revenge: Cramer expects the theme of retaliation to arrive on Monday. He said that if U.S. trading partners retaliated with their own tariffs or restrictions, it could lead to another decline.
But if they don’t, cramer says investors may accept the market’s recent retest and stick to its position.
Resigning: Mr. Cramer will also report on Monday from his designated “resignation sheet,” suggesting that Mr. Trump’s chief economic adviser, Gary cohn, is likely to step down.
Cohen, who is also the director of the national economic council, disagreed with the President’s announcement of tariffs on steel and aluminum. Mr. Cramer said his resignation could wreak havoc on stocks.
“Cohen is a steady hand,” said the host, “crazy money.” “If he quit, I worry that some people would start to worry about the government’s economic team has too much chaos, they will think it’s time to do some sales, it will happen, I’ve known Gary a long time, but I don’t want people to buy, sell, buy, sell… I realized that his departure would make it harder to become a raging bull. ”
Ryerson: kramer will also focus on the earnings reports of metals distributor rayson, which can provide insight into the debate on trump tariffs.
“It’s a small company, but it’s a thoughtful company,” he said. “I’ve been listening to them for years and management can tell us… If they think there will be retaliation, what retaliation means to American industry.
Tuesday: target, rose store.
Target: steady flow of retail business on Tuesday, starting with Target’s quarterly report. As the e-commerce strategy begins to work, Mr. Cramer expects the retailer to release a comeback story in its release.
Ross’s store: after the strong quarter of this week’s TJX Companies, cramer expects the advantage of discount retail to penetrate Ross Stores’s Tuesday earnings report.
Wednesday: dollar tree, costco, Raytheon industry.
Dollar tree: Mr. Cramer hopes the earnings report will change the negative view of the dollar store and provide some clear information to investors in the debate.
Although some people think that the Chinese government will have its revenge on American companies, but Cramer, points out that Dollar Tree stores (and other Dollar store) filled with products manufactured in China, this is a sizeable chunk of the country’s business.
The “crazy money” anchor points out that European trade authorities announced tariffs on American jeans and harley-davidson motorcycles on Friday. China, he said, could have a similar, largely symbolic, tariff that has little real-world impact.
“My view is that no one on the trade fair, but no one wants to start real trade war, perhaps by punishing some bad actors, we will actually save some work in this country.” “Said cramer. “If the world imposes tariffs on several iconic but relatively unimportant American brands, I would say that is a small price to pay.”
Costco, another retailer full of foreign products, is due to report earnings on Wednesday. Cramer expects strong quarterly and potential buying opportunities.
“Its stock is down $10 from its high,” he said. “Given that home depot will be the same level of $30 have fallen to the same level, we are about to enter the holiday sales season, this is planting industry, I hope let’s hope Costco is a greater impact, and before the report to provide you with better buying opportunity”.
Raytheon Industries: kramer warns family game companies about the earnings of Thor Industries, the RV manufacturer, and Thor Industries is a major contributor to his “experience economy” thesis.
“Thor is likely to be hurt by these tariffs, so they may say more negative stories than people expect,” said the “mad money” host.
Kroger, the supermarket chain, is due to release its quarterly figures on Thursday as it faces attacks from new competitors: Aldi and Lidl, the German chain, and Whole Foods, recently backed by amazon.
“The last time kroger easily beat that data, and you got a lot of temporary stress,” cramer said. “I think since then the stock has been overrunning and I will actually register before this quarter.”
Friday: non-farm payrolls.
On Friday, Mr. Cramer will focus on the U.S. labor department’s nonfarm payrolls report, which will be more important than usual after last month’s selloff.
“The whole selling began when we got the hot spots in February salary number – it’s too hot, a surge in interest rates, causing volatility soared, and lead to average the strange collapse, because all investors betting on the VIX is the mother of all short squeeze, and had to sell their shares,” kramer explains. “Will it happen again?
“The bottom line: I’m actually more worried about [employment data] than my trade partner’s retaliation,” cramer concludes. “However, if we get a good but not hot number, you want to know why we sold so hard this week and you think, ‘why don’t we buy something? ‘