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It’s creating a “tug-of-war” in the stock market, he said, because companies continue to announce positive news despite the negative geopolitical issues in the Middle East.
Because the market hates uncertainty, it is prone to selloffs due to negative headlines. It could also sell off if crude oil prices spike higher or if the President comments on the situation. For this reason, Cramer is “happy to sit on the sidelines until we get a little more clarity.”
He suggested that investors consider taking profits on some of their big winners and wait for a larger pullback before buying as he detailed next week's game plan.
On Monday the May industrial production number will be released. Cramer says the result may be better than many investors expect, as autos, aerospace and oil and gas all did well in the past month.
Tuesday will see the May housing starts report. This is a sector that Cramer said he is nervous about and, judging by the lack of mortgage applications the bounce in homebuilder stocks is unlikely to come.
Wednesday is the “big day of next week,” Cramer said, with the Federal Reserve set to comment on the current state of the economy. He thinks the Fed should stop buying bonds and start selling them. Meanwhile, FedEx (FDX) is scheduled to report earnings that same day. While Cramer doesn't care for the stock much at current levels, he said the conference call can be a valuable source for a read on the global economy.
Thursday is Rite-Aid (RAD) and Kroger (KR) reporting earnings. Investors who are not long Rite Aid should wait until after its earnings results before considering buying the stock. Kroger, he hopes, will provide a read on the natural and organic food market and perhaps even provide clues as to which supermarket company will be next to be taken over. He's also taking a "wait and see" attitude on Whole Foods Market (WFM).