Dow futures stocks test record highs amid vaccine rollouts and stimulus hopes. Congress reportedly nears a $900 billion aid package that could see checks of between $600 to $700 sent out before the end of the year.
In the last episode of Mad Money, Jim Cramer said that fairly or unfairly, this is a great moment for the stock market. While the doubters might think that the rally is bogus, Cramer said there's a lot to like going into 2021.
TheStreet's Katherine Ross and Cramer are talking about United Airlines’ contact tracing program, buying more Bitcoin, and the complaint filed against Robinhood.
United Airlines Stock: Buy or Sell?
On Wednesday, United Airlines (UAL) - Get United Airlines Holdings, Inc. Report said it will work with the Centers for Disease Control and Prevention (CDC) to collect customer contact information for all international and domestic flights.
Shares of United Airlines, JetBlue Airways, and Spirit Airlines, hit turbulence Wednesday after J.P. Morgan analyst Jamie Baker double-downgraded all three airlines to underweight from overweight.
Baker attributed the move to inflated valuations for the stocks after their recent run-up. That surge has "significantly diminished the implied potential upside" for the companies next year, as they already have breached his 2021 year-end targets, Baker wrote in a report cited by The Fly.
Cramer said that airlines have been forward about everything involving masks and the contact-tracing, but he thinks it will not matter.
“What matters is, plain and simple, the vaccine,” he said. Cramer added that over 300 million Americans need to get vaccinated by the end of February.
Buying More Bitcoin
Bitcoin continued skyrocketing to new records, breaching the $20,000 barrier for the first time on Wednesday as investors and speculators jumped on board.
Some are eager to be part of the fun, and some fear missing out on all the gains their neighbors brag about. Masters of hype are now calling for a $30,000 price. Bitcoin recently traded at $20,755, up 6.9%, and has blasted 77% higher in the last three months.
Cramer is looking to buy more Bitcoin and said that he tries to buy some Bitcoin every month.
“Bitcoin is not going to be the coin of the realm but it is an added diversification just like gold,” he said.
Should Robinhood Protect its Users?
Massachusetts securities regulators reportedly were expected to file a complaint Wednesday against the trading platform operated by Robinhood Financial LLC, for allegedly marketing aggressively to inexperienced investors and failing to implement controls to protect them.
The enforcement arm of the Massachusetts Securities Division charged that Robinhood failed to protect its customers and their assets in violation of state laws and regulations, according to The Wall Street Journal, which cited a final draft of an administrative complaint.
Cramer said that he didn’t like the term “gamification” of stocks that were used in the complaint, because he thinks stocks are a form of investing “but some are gamblers and gambling needs discipline.”
“They shouldn’t have used this term gamification as if those people were children because they are people with money who have done their research,” he added.
None of these stocks are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.