Investors can expect more days like today, days where some stocks are red hot while others are dropping like a stone, Jim Cramer told his Mad Money viewers Monday.
Until we hear what the Federal Reserve has planned on Wednesday, Cramer said investors are likely to continue dumping the industrials and the banks in favor of the secular growth names.
The stock market is indeed a market, after all, one made up of thousands of different stocks. That means it rarely trades as a single entity, Cramer reminded viewers. But before you pass the "buy" button on your favorite growth stock, Cramer reminded viewers that not all growth is the same.
Down one shopping aisle are what Cramer dubbed the senior growth stocks, tried-and-true names like FAANG (Cramer's acronym for Facebook (FB) - Get Report, Amazon (AMZN) - Get Report, Apple (AAPL) - Get Report, Netflix (NFLX) - Get Report and Alphabet (GOOGL) - Get Report), along with Microsoft (MSFT) - Get Report, Adobe Systems (ADBE) - Get Report, Square (SQ) - Get Report and PayPal (PYPL) - Get Report. On another aisle in this market are the junior growth names like Twilio (TWLO) - Get Report, Roku (ROKU) - Get Report, Etsy (ETSY) - Get Report and DocuSign (DOCU) - Get Report. Cramer remains a believer in the senior names, but felt the junior names may be risky.
Likewise, Cramer said he's not willing to give up on growth with steelmakers, miners and oil. That's because even if the U.S. taps the brakes on interest rates, which he doesn't think will happen, the rest of the world still has a lot of growth ahead in the coming months.
In Cramer's view, the Fed is willing to sacrifice a little inflation if it means creating jobs and putting more people to work. That's a recipe for lots of sectors to continue their rally to new record highs.
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Off the Charts: Independence Day Patterns
In the "Off The Charts" segment, Cramer checked in with colleague Larry Williams for another take on the direction of the markets. This time, Williams looked at the market through the prism of the seasonal July 4 patterns.
Williams noted that the last week of June is historically the worst time to sell stocks, as they always sell off during that week. The week before however, specifically the 8th or 9th last trading day of the month, has proven to be a winner. This year, those days would be Friday, June 18 or Monday, June 21.
As for buying them your stocks back, Williams said that five days later is the sweet spot, or the first day after the holiday that the market trades higher.
This strategy has been a winner 21 of the past 22 years.
Executive Decision: American Express
Squeri said the consumer is looking a lot better than we expected coming out of the pandemic. Credit debt is down, personal savings are up and there's a lot of pent up demand to get out and spend. Even in the beleaguered travel industry, Squeri reported that May 2021's bookings are 95% of what they were in May 2019.
American Express is evolving into a lifestyle, Squeri added, and that's good for millennials that want access and experiences, both of which American Express can provide.
Turning to the topic of small businesses, Squeri noted that small businesses also love American Express and thanks to their recent acquisition of Cabbage, a digital cash management platform, they can now provide more services to business than ever before.
American Express is also working hard to support minority-owned businesses. Squeri said that they offer access to capital, grant, mentoring and leadership training to minority businesses.
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 Tape: Solana Labs
In his "Off The Tape" segment, Cramer spoke with Anatoly Yakovenko, co-founder and CEO of the privately-held Solana Labs, which just raised $314 million to bring the next generation cryptocurrency applications to market.
Yakovenko explained that while blockchain technologies are revolutionary, the systems they're currently built on are way too slow to keep up with their growth. Many of the transactions happening today are running on technology that's more than 10 years old.
Solana's systems are optimized for today's technologies, Yakovenko said. They aim to provide services that are "blockchain at the speed of Nasdaq." Solana's platform is already clocking in at 65,000 transactions per second, on par with Visa's (V) - Get Report processing capabilities.
Solana is still in startup mode with no earnings to speak of, Yakovenko said, but every day developers are switching to Solana's platform and building their applications, so it won't be long before growth begins to accelerate.
What's the Point?
Think you're "sticking it to the man" with your portfolio? If so, Cramer said if you're likely just hurting yourself.
Case in point: Corsair Gaming (CRSR) - Get Report, the high-end peripheral maker. Shares surged in early trading after being mentioned on WallStreetBets, only to have the short sellers swoop in and erase most of those gains by the close. Cramer said if you bought shares over $40, you got hurt big time. But that's what happens when you follow a meme.
Sure, Corsair has a great quarter this time around, but does the stock have the staying power to support these levels? Probably not. By comparison, long-time Cramer favorite Logitech (LOGI) - Get Report also makes gaming peripherals and that company has proven it has staying power both in the home and in the workplace.
Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Monday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in FB, AMZN, AAPL, NFLX, GOOGL MSFT, PYPL.