Can the biggest themes of the past six months serve as a guide for the next six months? Jim Cramer offered his Mad Money viewers a list of seven themes he said will lead stocks higher in the second half of the year.
The first big theme to watch is activist investors. After activists at Engine No. 1 secured three board seats at ExxonMobil (XOM) - Get Free Report, anything is now possible. Next, Cramer said to watch for the new hybrid workplace. Once thought as a temporary fad, working remote is now here to stay.
Third, investors need to keep an eye on China's new tone, which has far-reaching impacts on tariffs, trade, mergers and global politics. Fourth, keep the other eye on crude oil. As prices near $100 a barrel, Cramer said Chevron (CVX) - Get Free Report, Devon Energy (DVN) - Get Free Report and Pioneer Natural Resources (PXD) - Get Free Report only become more attractive.
The next big trend are overpriced IPOs. These deals keep on coming and eventually, they'll suck the air out of the market. So too will the next theme, rampant ransomware, which is increasingly affecting small and mid-size businesses.
Finally, Cramer said the meme stocks are a theme to watch, as the WallStreetBets crew continues to branch out beyond just GameStop (GME) - Get Free Report and AMC entertainment (AMC) - Get Free Report.
Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Executive Decision: Carvana
After recently turning negative on Carvana (CVNA) - Get Free Report, the online used car retailer, Cramer checked in with Ernie Garcia, the company's chairman and CEO, for a fresh take on Carvana's outlook.
Garcia said Carvana's results speak for themselves. The company grew its revenue two times over the past two years, while the overall auto market remained flat.
When asked how they achieve their success, Garcia explained that Carvana is vertically integrated. The company mostly sells the cars it buys from customers. Carvana spends around $1,000 per vehicle in refurbishment, he said, then they resell the cars at a great price that still makes Carvana money.
When asked about competition, Garcia noted that the auto market is huge, leaving plenty of room for everyone. The macro-environment is great for the auto market, he concluded.
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
Off the Charts
How much longer can the market rally continue? Cramer checked in with colleague Mark Sebastian in the "Off The Charts" segment. Sebastian is an expert on the CBOE Volatility Index, also known as the "fear gauge" or simply by its ticker, the undefined.
Sebastian looked at a daily chart of the VIX going back 18 months and noted that ever since the pandemic began, the VIX has been in a steady downtrend. Month after month, the index makes lower highs and lower lows as investors settle into the long-term effects of COVID-19.
So what did Sebastian make of Tuesday's big spike in the VIX? Not much. He said yesterday, the VIX acted as it should -- opposite that of the S&P 500. As the S&P declined, the VIX rose. As the S&P recovered, the VIX fell in a rational and reasonable pattern, just as it should.
Everything is normal, Sebastian concluded, and there's no reason to think a big decline is coming any time soon.
Executive Decision: Trade Desk
Green explained that Solimar is an advertising platform that allows digital marketers to do more with less, especially in the areas of connected TV, journalism and music. He said that while Google (GOOGL) - Get Free Report is the 800-pound gorilla in the space, they've done so largely monetizing two properties, Google and YouTube. Today's Internet, however, isn't as much about navigation as it is about a unified experience across an increasingly competitive landscape.
Solimar provides marketers with the insight and data they need to know what's working and what's not, which ultimately means better ads and experiences for consumers.
Shares of Trade Desk rose 1.4% Wednesday.
Apple: Own it, Don't Trade it
When Apple's shares bottomed in early March, the bears were out in droves, signaling once again, as they often do, that the company was doomed. Headlines abound that a bear market was in sight as Apple slashed orders for iPhones.
But in the weeks and months that followed, Apple did not disappear. Instead, its shares quietly rose over 30 points. The bears, as they often do, made investors fearful and kept them out of making money.
That's why Cramer reiterated his trading philosophy when it comes to the tech giant... own it, don't trade it.
Apple shares added 1.8% Wednesday to close at $144.57. Shares are up more than 14% in the past month.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Wednesday evening:
MP Materials MP: "I'm happy with their business and I want you to stick with it."
ImmunityBio IBRX: "This is a pure spec. As long as you understand that, I'll bless it."
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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL, GOOGL.