FANG stocks -- an acronym standing for Facebook (FB) - Get Facebook, Inc. Class A Report , Amazon.com, Inc. (AMZN) - Get Amazon.com, Inc. Report , Netflix, Inc. (NFLX) - Get Netflix, Inc. (NFLX) Report and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report -- have done great this year.
Many investors also lump other oft-talked about stocks into the group, too, like Apple (AAPL) - Get Apple Inc. (AAPL) Report and Alibaba (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report , TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
But perhaps that's exactly what investors should start doing for a moment -- stop trading.
Not many expected such a high-powered performance to the beginning of the year. Facebook, Alphabet and Amazon are each up more than 6% in the first five trading days of January, while Netflix stock is up more than 10%. Although Apple is up just 3.3% so far, Alibaba has surged more 10.5%.
"Just be aware that the group, I think, needs to pull back," he explained Monday morning. Although Cramer, who also manages the Action Alerts PLUS charitable trust portfolio, has a long position in several of these stocks via the Action Alerts PLUS portfolio, that doesn't prevent him from looking at the names objectively.
Even with the positive autonomous driving news for Nvidia (NVDA) - Get NVIDIA Corporation Report -- which is a negative for Alphabet, as it does not use Nvidia products in its Waymo self-driving car division -- the stock is still up on the day, he pointed out.
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"This group has gotten a little too hot," Cramer reasoned. "That's what I'm saying."
The volume driving FANG and others higher has been light. Cramer says he's concerned that sellers could drive these stocks down quickly. On the plus side, though, patient investors can nab these fabulous companies on a decline.
"I'm just urging people to wait for better prices," he concluded.
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At the time of publication, Cramer's Action Alerts PLUS had long positions in Facebook, Alphabet, Apple and Nvidia.