Next week's trading will hinge on the latest economic data and what the Federal Reserve has to say about them, Jim Cramer told his Mad Money viewers Friday. But if there's one thing Cramer's learned over his career, it's to never sell a bull market.
There's bound to be a lot of chatter on Monday about "growth versus value," Cramer said, but individuals should ignore it. Focus instead on finding high-quality companies that are doing well and your portfolio will be rewarded.
Cramer's game plan continues on Tuesday with the latest Producer Price Index and earnings from Oracle (ORCL) - Get Report. He said if we see strong inflation again with the PPI, it may be hard for the Fed to ignore. As for Oracle, many regard the company as a fossil, but in reality, they offer a lot of cutting-edge cloud solutions.
On Wednesday, the Fed will be meeting and investors will want to hear the words "transitory inflation." We'll also get the latest housing starts number and earnings from home builder Lennar (LEN) - Get Report, which should outline how commodity prices are faring.
Then on Thursday, we'll hear from grocer Kroger (KR) - Get Report, but Cramer said he'd rather own America's largest grocer, Walmart (WMT) - Get Report. He was bullish on Jabil (JBL) - Get Report, the contract manufacturer, and Adobe Systems (ADBE) - Get Report, which has its finger on the pulse of the cloud.
Finally on Friday, Cramer told viewers to be on the lookout for what the next target of WallStreetBets might be, as the clan tends to focus on one stock every week. But don't buy into the hype, Cramer urged, only buy in if the company's long-term outlook makes sense and it's worth it on its own merits.
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.
Am I Diversified?
In his "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
The first portfolio included AbbVie (ABBV) - Get Report, Valero Energy (VLO) - Get Report Blackstone (BX) - Get Report, CSX (CSX) - Get Report and Intel (INTC) - Get Report. Cramer called this portfolio interesting, but advised swapping out of Intel and adding Advanced Micro Devices (AMD) - Get Report.
The second portfolio's top holdings included Exxon Mobil (XOM) - Get Report, Amazon (AMZN) - Get Report, Altria (MO) - Get Report, Carvana (CVNA) - Get Report and Roblox (RBLX) - Get Report. Cramer blessed this portfolio as properly diversified.
The third portfolio had Airbnb (ABNB) - Get Report, Coupa Software (COUP) - Get Report, Amazon, First Horizon National (FHN) - Get Report and Gap Inc. (GPS) - Get Report as its top five stocks. Cramer applauded this portfolio as also having great diversification.
The fourth portfolio's top stocks were Realty Income (O) - Get Report, IBM (IBM) - Get Report, Johnson & Johnson (JNJ) - Get Report, PepsiCo (PEP) - Get Report and Chevron (CVX) - Get Report. Cramer said this portfolio is exactly how you make money long term.
Off the Charts: Bitcoin, S&P 500
In the "Off The Charts" segment, Cramer checked in with colleague Tom DeMark on the outlook for bitcoin and the S&P 500 index.
According to DeMark, after a staggering decline, bitcoin will need time to consolidate before beginning to recover. He's created a 13-day countdown pattern for when that change is likely to occur. He said if bitcoin can hold above its May 19 low, it needs to see another nine ugly sessions, which may take another three or four weeks to occur. He noted that bitcoin's current chart mirrors that of the recovery after the 1987 market crash.
As for the S&P, DeMark felt the index is running out of steam and is close to a top. He noted the S&P only needs two more up-days to complete his 13-session countdown.
Cramer said given DeMark's track record, he advises patience with bitcoin and vigilance with the overall markets.
Executive Decision: UWM Holdings
In his "Executive Decision" segment, Cramer spoke with Matt Ishbia, chairman and CEO of UWM Holdings (UWMC) - Get Report, the mortgage broker that today announced an ambitious plan to become the No. 1 lender by 2024, a position currently held by Rocket Companies (RKT) - Get Report. UWM shares responded by rallying 5.8% by the close and currently trade for 11 times earnings with a 4% yield.
Ishbia said his "called shot" today stems from the results the company has been able to deliver and confidence in the future of their business. When you're able to close loans fast and make the process painless for buyers, people want to use you, he said, and that's exactly what UWM is seeing.
When asked about the recent declines in their stock, Ishbia said that UWM got lumped in with other companies, like Rocket, but in reality, UWM is forecasting growth, not weakness. They're not a cyclical stock, he added.
When asked why he's so confident in his growth, Ishbia said simply that UWM dominates the mortgage brokerage market but that market only accounts for 25% of all mortgages. Just growing their piece of the pie to 30% or 35% will translate into big gains.
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.
The Object of the Game
In his "No Huddle Offense" segment, Cramer reminded viewers that the goal of investing is making money, not destroying the guy on the other side of the trade. He said the reason he's so hard on the WallStreetBets crowd isn't because of their tactics. It's because of their attitude and style of investing.
Cramer applauded the epic short-squeeze in GameStop (GME) - Get Report, but said the goal of that trade should have been to make money, which many of them did, and not to bring the hedge fund managers to their knees.
And if the WallStreetBets traders are so enamored with GameStop chairman Ryan Cohen because of what he did at Chewy (CHWY) - Get Report, Cramer said they should just buy Chewy, which continues to deliver incredible results for shareholders.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Friday evening:
ChargePoint CHPT: "I think ChargePoint is good but it has a lot of competitors and that makes it difficult to own."
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At the time of publication, Cramer's Action Alerts PLUS had a position in WMT, ABBV, AMD, AMZN.