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Monday Market Rally Worries Jim Cramer

Jim Cramer has some thoughts on the markets on Monday.

NEW: Everything Jim Cramer is watching in the markets on Election Day. 

While there may be a lot to like about markets beginning November higher after a rocky October, Jim Cramer said Monday's market action has him worried. 

Stocks were rising in intraday trading as Wall Street rebounded from its worst month since March as investors prepared for a week filled not only with the presidential election but also with a Federal Reserve policy meeting and the U.S. jobs report.

An expansion in U.S. manufacturing in October was fueling stock market gains. The Institute for Supply Management's manufacturing index for last month rose at the fastest pace in more than two years.

With Election Day looming Tuesday, Democratic nominee Joe Biden leads President Donald Trump in polls and cases of the coronavirus that has now killed 231,000 in the U.S. and 1.2 million across the world, volatility has been a focus for investors in the past few weeks. More of the same is expected this week as the Fed meets Thursday and the nonfarm payrolls report for October is released Friday.

"Earnings season has been winding down, and with about 320 S&P 500 companies reporting so far collective profits are likely to fall 10.2% from last year, according to Refinitiv. Of the companies reporting, however, some 86.2% have topped Wall Street forecasts, a figure that sits around 20 percentage points over the long-term average," wrote TheStreet's Joseph Woelfel

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Cramer said that markets are pricing in a smooth election with a clear winner. "I think that's too fairy tale, so I don't like this rally," Cramer said. 

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