September's volatility is likely to continue into next week's trading, Jim Cramer told his Mad Money viewers Friday. That means investors should prepare for next week to look a lot like this selloff.
Over on Real Money, Cramer takes time to talk about the 20th anniversary of 9/11. Read Jim Cramer: We Can't Afford to Forget September 11, 2001. He says the fear is that those too young to remember the tragic events of that day will not understand the significance of them.
Cramer's game plan for next week's action starts on Monday in the tech sector, when Palo Alto Networks (PANW) - Get Palo Alto Networks, Inc. Report will hold an analyst meeting. Cybersecurity remains hot and Palo Alto should have good things to say. We'll also hear from Zoom Video (ZM) - Get Zoom Video Communications (ZM) Report and Oracle (ORCL) - Get Oracle Corporation Report, both of which should also be strong.
Next, on Tuesday, footwear maker Crocs (CROX) - Get Crocs, Inc. Report will hold an investor day. Cramer said he expects the company to boost earnings estimates. Likewise with Cisco Systems (CSCO) - Get Cisco Systems, Inc. Report on Wednesday.
Thursday brings the latest retail sales numbers, but Cramer said this backwards-looking indicator isn't as important as Friday's forward-looking consumer sentiment numbers. Retail has been heating up, and we'll hopefully learn whether that trend will continue into the holiday season.
Executive Decision: RH
In his first "Executive Decision" segment, Cramer spoke with Gary Friedman, founder, chairman and CEO of high-end furniture retailer RH (RH) - Get RH (Restoration Hardware) Report. Shares of RH have risen 1,800% over the past five years.
Cramer first asked how RH has been able to defy the skeptics for so many years. Friedman explained that people are always taught to just look at the stars and not to reach for them, but that's what RH has always done. He said people always ask him whether RH is like Home Depot (HD) - Get Home Depot, Inc. (HD) Report or Williams-Sonoma (WSM) - Get Williams-Sonoma, Inc. Report, but RH isn't like anything else. They don't build furniture stores, he explained, they build inspiring spaces.
RH has created a whole new market, Friedman continued. That's why their Chicago location has seen over 100 wedding proposals and why their new Paris location will serve champagne and caviar overlooking the Eiffel Tower.
RH is often misunderstood because the company is constantly changing. They look towards the long-term and aren't distracted by short-term issues like supply chain disruptions.
Cramer said Friedman's stuff is not only great, he's also a money maker for shareholders.
Off the Charts
In the "Off The Charts" segment, Cramer checked in with colleague Larry Williams to learn just how brutal the month of September can be for stocks.
Williams looked at the historical seasonal patterns of the S&P 500 over the past 20 years and found that a single pattern rings true. While the beginning of the is volatile, Sept 17 is the high point, before the averages head into steep declines through mid-October.
Williams calculated that the optimal time to sell the S&P is on the seventh-to-last trading day in September. That would have been a winning trade in all of the past 23 years. In 2021, this day translates to Sept. 22.
Executive Decision: Avnet
For his second "Executive Decision" segment, Cramer also spoke with Phil Gallagher, CEO of Avnet (AVT) - Get Avnet, Inc. Report, to learn more about the state of the technology supply chain. Shares of Avnet currently trade for just nine times earnings.
Gallagher explained that Avnet is at the center of many technology supply chains and as chip shortages intensify, more and more companies are reaching out for help. He said manufacturers are rapidly changing from "just-in-time" inventory models to "just-in-case" to ensure that a $1 microcontroller won't hold up the production of their $50,000 vehicles.
Avnet typically deals with smaller manufacturers, Gallagher added, but in today's environment, even the largest of companies have been in touch. Avnet is the expert when it comes to technology supply chains and they're helping out in any way they can.
In his No-Huddle Offense segment, Cramer offered his thoughts on the 20th anniversary of Sept. 11, 2001. He said that day began as a beautiful morning, but ended as a pivotal moment in our history. He said Sept. 11 changed everything, both on Wall Street and around the world.
It's a day that should never be forgotten.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Friday evening:
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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.