Jim Cramer has one eye on market perennials like Apple AAPL, Walt Disney (DIS) - Get Walt Disney Company Report and Boeing (BA) - Get Boeing Company Report this week, and he has the other eye on the COVID-related factors that threaten economic and market growth.
Using the term “stark dichotomy” to describe stock market positivity and market pessimism -- two all-too-human elements the market is already seeing this week -- Cramer offers some insight on congressional shenanigans and where the market is heading next.
Get Cramer’s latest trading ideas as he puts this market action into perspective over on Real Money.
This from Cramer on Monday: “At 4:30 in the morning the only stock that was higher was the perennial meme AMC (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report, leading me to speculate, is that really all there is? How about plowing into Apple? Or Disney? Just because it doesn't have a big short position in it, doesn't mean it is un-investable. But by mid-morning we had reversed and stocks like Boeing, trading heavily down by five points at 5 a.m., turned around even as this quarter is anything but a sure thing.”
What's with this stark dichotomy, Cramer asks? It involves heavy doses of COVID and herd immunity.
Ultimately, Cramer says, “No matter, with this form of COVID [the Delta variant], getting sick will happen faster than getting vaccinated and a peak will be reached.
"And when that happens, if you aren't long exactly what you would be short under the nightmare scenario, you will miss a cornucopia of profits that only a fool would pass on.” Get Cramer’s full assessment and trading ideas over on Real Money -- read Jim Cramer: Nightmare vs Positivity.
If we get some sort of pseudo-national immunity that's a combination of vaccines and infections, or even if we get a peak in cases, it could be like a second reopening and the travel and leisure, energy and cyclical and retail stocks will be the place to invest, he writes.
Cramer has four points to make to mark what investors know, what investors should know, and what investors really don’t know these days -- which he calls understandable given the contradictions and open-ended questions coming out of Washington, D.C.
Those points are: the outlook for infrastructure legislation and how to pay for it, another debt-ceiling crisis, plus the inflationary spiral, and finally geopolitics:
“The Chinese are attacking their own companies, companies that trade here, seemingly without rhyme or reason. Maybe it's a crackdown on corrupt billionaires both here and there? Maybe it's a way to stop things that should be free to all rather than paid to some? Maybe it's a belief that some sites are unbecoming to a great nation.”
Cramer does see some upside on the COVID issue from a variety of elements – from an ex-Trump administration official to the National Football League – that could help drive market growth over the next few weeks.