The markets are under pressure in intraday trading on Tuesday, March 30.
Jim Cramer told TheStreet Live that he isn’t as negative as the indices would have you believe and he’s looking for buying opportunities Tuesday.
“We’re having a very good vaccination rollout and I don’t want to lose site of the fact that there are stocks that are going to work,” Cramer said.
So what’s the game plan?
“Scrutinize the market and pick something you really like, especially in the Nasdaq,” Cramer said. “Interest rates may be more tame than people realize.”
Recap Tuesday’s episode of TheStreet Live with Jim Cramer and Katherine Ross in the video above and be sure to catch TheStreet Live every weekday at 10:30 a.m. ET:
How Should Investors Approach Oversupply in the market?
“What’s the most important story affecting the market? No, it’s not imploding hedge funds or the pandemic. It’s the glut of new supply that’s hitting investors from every angle,” wrote Scott Rutt in his Mad Money recap. “First, there are traditional IPOs. This quarter was the biggest quarter for new public offerings since 2000, with over 100 deals for investors to digest. The more IPOs we see, the lower quality they are, Cramer said, and that’s a huge drag on the market.”
“But IPOs aren’t the only problem. We’ve also seen a record in companies coming public via special purpose acquisition companies, or SPACs. We saw almost 300 SPAC deals this quarter, more than all of 2020,” Rutt continued. “Adding to IPOs and SPACs are companies performing secondary offerings. Here, too, we’re seeing record levels of activities as companies try and take advantage of soaring share prices to raise additional capital. There’s also a wave of insider selling as the lockup periods from last year’s IPOs are expiring, allowing insiders to finally sell their shares.”
Could Tesla Semi Production Be Hit By a Battery Cell Shortage?
In a Tweet from his verified account on Tuesday, Musk said that while demand for the trucks is “no problem … but near-term cell supply makes it hard to scale Semi”, adding that ‘this limitation will be less onerous next year.”
Musk told investors on a conference call following Tesla‘s fourth-quarter earnings, however, that while a Tesla semi would use “typically five times the number of cells that car would use,” it “would not sell for five times what a car would sell for,” adding that cell group constraints were the main reason that the group hadn’t scaled-up production of the truck as of yet.
Robbing Peter to Pay Paul
That was the title of Jim Cramer’s Monday evening Real Money column.
“You would think that, though, it would impact every stock. Nope, this market is always robbing Peter to pay Paul and this time Peter is the Great Reopening trade and Paul is the “doesn’t work like that.” Peter is always paying Paul in this tape; accept these two trade rubrics. In this case, Peter’s the cyclicals and the banks, and Paul is the stay-at-home winners that have been punished for ages. It’s a strange rotation, given that Goldman Sachs (GS) is talking about 10% gross domestic product growth and a general belief that we are about to have a repeat of the Roaring Twenties, the last time a pandemic came to a conclusion,” Cramer wrote.
“How about the robbed Peter? I think that the money comes right back to the cyclicals and this is a rally-based on the emotional comments of [CDC Director Rochelle] Walensky. If she hadn’t dropped the “impending doom” comment, we might have spent more time pondering the possibility that everyone who wants to be vaccinated will be, maybe by the end of April,” he continued later on in the column.
Hear what Cramer is only telling members of his Action Alerts PLUS investing club in Tuesday’s Daily Rundown.