Jim Cramer has some thoughts about the market.
In fact, he says that there's "too much bullishness" right now.
Watch the full video above to see why he says that.
I'm Katherine Ross and I'm joined by Jim Cramer. We are joining you via Skype this morning in our effort to practice social distancing. Jim, what's top of mind for you this morning?
Dr. Fauci's saying that maybe things are about to turn and this was on top of last Thursday where we were saying that maybe things were going to get bad. This very mixed message is causing too much bullishness in the stock market. I think that Dr. Fauci like others, wants to be positive. A plateau is not a thing that you're (silent). They have plateaued in Madrid and it turns out to be not even a plateau, it still keep going up. What we want is eradication. Okay? And everything short of eradication is going to make it so that you are not going to live your life the way we did. So, while I appreciate all of Dr. Fauci's work, I do not think that cheering or saying, "Hey, listen, we're at a plateau," means anything good for the stock market. All it means is that maybe we'll be going outside in a month or two and what we really want to hear is that the tests are being given.
I interviewed the head of the Atlantic system that includes the local hospital, I Support Summit, and I said, "I want testing and let's have some testing" and he said, "Look, I'd love to test, but we don't have anything to test with." And this is what? This is almost mid-April, April eight, and we still don't have any to test with. I live in a very affluent area and I'm trying to, all I want is a place near Summit Hospital, which I support, which Atlantic Health System owns so that before I go to work I can get tested. And until we have that and until we have an Apple watch that gives our temperature so I can go like this, wave my hand, I broke my Apple watch last night, furious about that, then any rally like this is going to turn out to be a rally that's not worth being.
With the case count nearing 400,000, it's worth saying that that's almost double what we saw last week. So, there still is caution to be taken from everyone from the investor to the consumer.
What are the big gainers say Nordstrom and Gap. Okay? Hanes brand, Lennar, Marriott, Pulte, but the mortgage figures were down 17%. The idea of going to shop at a Nordstrom or Gap, I want to know that everybody who works there has been tested, I want to know that they're wearing masks. I know that sometimes the tests don't even tell you exactly where things are. I want temperature and these stocks are going up because they went down too much. Okay? FedEx is at 123. That stock has made a remarkable comeback, but that's because China's coming back online. There at least I can point to something and say, "Oh, well that's got some good news." The others that we're getting are stocks that were reflecting bankruptcy that are not going to go bankrupt now or they got so low that they became well under what the company's worth.
But I reiterate that until we get really good testing and then all the way until we eradicate COVID, you don't want to own those stocks. We own a retailer TJX and TJX is furloughing a lot of people. I'm still betting TGX will do big because when they finally get open, they'll have unbelievable bargains. But we trimmed some TGX yesterday. Why? Well, because frankly, we're not beginning to feel that the testing isn't as close as we thought it was going to be and the social distancing we're doing now is going to make it so the long line at TJX is going to be so long because there's so much gaps in between that maybe it doesn't do as well. The idea that MGM Resorts is up 6% today. Well, that's because it shouldn't have maybe gone down as much as it did, but Katherine, the idea that we're going to go to a casino and we're going to look for a house and we're going to go to a store, it's too soon. And if you want the stocks to reflect that, that's fine. Me, I'm a seller, not a buyer in that situation.
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