Jim Cramer reveals 7 stock current market problems likely into earnings season

CNBC’s Jim Cramer on Tuesday exposed he just lately trimmed holdings in his charitable have confidence in ahead of earnings year as he grows far more involved about likely market headwinds.

The fund, ActionAlertsPlus.com, trimmed roughly $100,000 from its holdings in section since of the issues, he reported.

“I’m not a bear, but there are authentic issues right here, which is why we marketed a bunch of stock for my charitable have confidence in on the eve of that conference phone I gave final week,” he reported on “Mad Revenue.” “This sector can deal with one or even two of these opportunity challenges, but it are not able to tackle all of them.”

Cramer laid out 7 worries that he has. Underneath are critical takeaways that are driving his ambivalence:

Earnings benefits

“This week we have bank earnings and all those shares have operate so considerably that their figures require to be borderline best,” Cramer mentioned. “Call me worried that this pink-warm group could damage the tenor of earnings time.”

Inflation

“I consider [Federal Reserve Chair] Jay Powell is correct that the present inflation spike is transitory,” he mentioned. “I will not imagine we will have to tighten any time soon because of inflation, but I’ve been improper just before, and this is a respectable worry even as the client selling price index numbers this morning you should not feel all that worrisome.”

Stock glut

“We have had so numerous IPOs and so quite a few SPAC discounts that I’m concerned about the prospect of a $100 billion direct listing [from Coinbase] sucking money from almost everything else,” Cramer stated. “Also a great deal source, too many concerns, not more than enough self-discipline.”

Covid-19

“We’ve gotten complacent about Covid,” the previous hedge fund manager stated. “I know people are ill of quarantining, and vaccinations — help you save [Johnson & Johnson] — [are] heading pretty effectively, even though we’re not out of the woods.”

S&P oscillator

“We are without a doubt overbought on the S&P oscillator that I swear by,” he explained. “We’ve experienced an outstanding run, and I’d feel much, substantially more comfortable if we abide by that up with a mild drop somewhat than some sort of cliff jump. The longer the market stays overbought, the extra concerned I get.”

Semiconductor shortage

“These shortages genuinely do be concerned me, especially the semiconductor scarcity. With out chips, there just isn’t everything most suppliers can do to improve production,” Cramer explained.

Foreign plan

“We have a new president and it feels like anyone, from Iran to North Korea to Russia and even China, wants to take a look at his take care of. I am most fearful about China, which appears to be established to clearly show Biden that it isn’t going to want to listen to anything about human rights or it will make a move on Taiwan,” he said. “To me, this prospective flashpoint is the most risky storyline in the planet correct now.”