The late-September swoon is here and it's time to take evasive action, Jim Cramer warned his Mad Money viewers Friday. That means investors need to lock in gains, raise cash and even sell short to protect their positions against what is historically a rough period for stocks.
The good news is the major averages have already been hit, which lightens the pressure. A market that's negative is also easily impressed.
Over on Real Money, Cramer explains why oil just keeps barreling along. 'Let's see why the rally can keep going for oil and natural gas and look at that striking Diamondback Energy buyback.' Get the full story and more of Cramer's investing insights.
Cramer's game plan for next week started with eyes on China, where Evergrande, a huge conglomerate with $350 billion in debt, could default and impact U.S. markets. We'll also hear from homebuilder Lennar (LEN) - Get Lennar Corporation Class A Report, which will provide an update on the housing market.
Next, on Tuesday, we'll hear if there's any good news at FedEx (FDX) - Get FedEx Corporation Report. Cramer will also be watching Adobe (ADBE) - Get Adobe Inc. Report and Workday (WDAY) - Get Workday, Inc. (WDAY) Report, two of his favorite cloud stocks.
The Federal Reserve will make a decision on interest rates Wednesday, and Cramer expects the market will react negatively to anything they say, especially regarding the federal debt ceiling.
Thursday brings earnings from Costco (COST) - Get Costco Wholesale Corporation Report, Nike (NKE) - Get NIKE, Inc. (NKE) Report and Darden Restaurants (DRI) - Get Darden Restaurants, Inc. Report along with an analyst meeting from Dell (DELL) - Get Dell Technologies Inc Class C Report. Cramer told viewers to be careful with Nike, but said he'd buy Costco after they report and Dell after the meeting.
Finally on Friday, Fed Chair Jay Powell will be speaking, but as with Wednesday, nothing he says will likely be seen in a negative light.
Executive Decision: Builders FirstSource
In his first "Executive Decision" segment, Cramer spoke with Dave Flitman, president and CEO of Builders FirstSource (BLDR) - Get Builders FirstSource, Inc. Report, the building materials supplier with 550 locations in 39 states.
Flitman said Builders FirstSource operates in 84 of the top 100 markets in the U.S., with the majority of their revenues stemming from single family home construction. Some 12% of sales comes from multifamily units, he said, and another 12% from the professional repair and remodeling markets.
When asked about the state of the housing market, Flitman explained that the U.S. had been under-building for years, but in 2020, the home builders began to pick up the pace. Then, as the pandemic hit and housing heated up even more, suppliers simply weren't ready to cope, especially once COVID shutdowns began. This has led to shortages and cost inflation across many categories from lumber to doors and windows and beyond.
There are still opportunities to be had, however. Flitman said that Builders FirstSource is going digital, moving its 700 designers and engineers to all-digital workflows that could be a $1 billion opportunity for the company.
The stock market has a lot of challenges, from inflation and negative earnings to supply chain issues and a looming debt ceiling debate, Cramer told viewers. But one sector that's more durable than most are the real estate investment trusts, or REITs. Cramer offered up his 10 favorites in the group.
The 5G wireless revolution marches on, and that means the cell tower REITs are still in high demand, with American Tower (AMT) - Get American Tower Corporation Report and Crown Castle (CCI) - Get Crown Castle International Corp Report being the two best in this sector. When it comes to retail, look for Simon Property Group (SPG) - Get Simon Property Group, Inc. Report for malls and Tanger Outlets (SKT) - Get Tanger Factory Outlet Centers, Inc. Report for with a 4.2% dividend yield.
Cramer suggested Prologis (PLD) - Get Prologis, Inc. Report and Equinix (EQIX) - Get Equinix, Inc. Report when it comes to data centers and tech, Ventas (VTR) - Get Ventas, Inc. Report for senior living and Innovative Industrial Properties (IIPR) - Get Innovative Industrial Properties Inc Report for specialty industrial properties. All of these names have stability and great yields.
Get more trading strategies and investing insights from Cramer and the other contributors on Real Money.
Finally, Cramer recommended Iron Mountain (IRM) - Get Iron Mountain, Inc. (IRM) Report, which is transforming itself for physical to digital record storage and has a 5.5% yield, along with Starwood Property Trust (STWD) - Get Starwood Property Trust, Inc. Report, which has an even bigger 7.7% yield that's rock solid.
Update on Vaccine Boosters
For an update on the state of the pandemic, Cramer again checked in with Dr. Eric Topol, founder and director of the Scripps Translational Science Institute.
Topol explained that while Pfizer (PFE) - Get Pfizer Inc. Report asked for permission for everyone to get booster shots, the data simply didn't support them, at least not yet. Thus the compromise was to allow them for those at high risk and those over the age of 65.
Topol added that all of the "happy talk" about the virus is not helping anybody. He said we are seeing more asymptomatic cases that are causing a lot of complications. Vaccines were always planned to be three shots, so boosters will be inevitable. But we're not there yet for most people.
When asked about Europe's "Green Pass" vaccination passports, Topol said they would be a big help to get vaccination rates up in the U.S., if only we'd allow them here.
Oil Barrels Along
In his "No Huddle Offense" segment, Cramer looked at the price of crude oil, which once again crossed $70 a barrel. He said that recently, $70 was the tipping point where OPEC stepped in and increased supply to ease pricing pressures. But this time is different.
Cramer said the U.S. shale producers have changed their playbook and are no longer drilling like crazy, allowing the Saudis a chance to rake in higher profits. Even the most undisciplined of producers, like Diamondback Energy (FANG) - Get Diamondback Energy, Inc. Report has suddenly gotten religion and is not opening the oil spigot.
That means oil prices could be heading a lot higher in the near future.
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:
Las Vegas Sands (LVS) - Get Las Vegas Sands Corp. (LVS) Report: "The only casino you should buy is Wynn Resorts (WYNN) - Get Wynn Resorts, Limited (WYNN) Report. Las Vegas Sands has too much exposure to Macau."
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At the time of publication, Action Alerts PLUS had a position in COST.