The market is still overbought, and Cramer is ‘still in sell mode.’ But that could change
Every weekday, CNBC’s Investment Club hosts a “morning meeting” live with Jim Cramer at 10:20AM ET. Here’s a recap of Tuesday’s key moments. “Still in sell mode” continues to be bullish on the Nvidia Watch Ford 1. “Still in sell mode” Stocks came under pressure Tuesday in a holiday-shortened trading week, even as technology companies continued to outperform. The S&P 500 and Nasdaq were weak after posting their biggest weekly gains since March on Friday. But the market remains in overbought territory, according to the S&P 500’s short-term oscillator, and Jim Cramer said Tuesday that it’s not too late for investors to trim some positions before expectations of a near-term rally pause. “I’m still in sell mode,” he said. Meanwhile, markets are once again focused on the Federal Reserve this week, with Fed Chairman Jerome Powell set to begin two days of congressional testimony on Capitol Hill on Wednesday. 2. Continue to be optimistic about Nvidia Evercore ISI raised the target price of artificial intelligence giant Nvidia (NVDA) from $500 to $550 per share on Tuesday. The company also estimates that the chipmaker will earn $30 per share by 2027 as data center workloads shift from traditional data centers. Architecture to Accelerate Servers. Jim said on Tuesday that Nvidia’s valuation, which may seem expensive at first glance, is quite reasonable in hindsight. “The rearview mirror has been really kind to Nvidia,” he said. Shares of the club holding company were trading roughly flat at about $427 a share Tuesday morning. NVDA stock has nearly tripled so far this year, hitting an all-time high on Friday. 3. Watch Ford Jim visit Ford Motor Club (F) Tuesday in Dearborn, Mich. In a meeting with CEO Jim Farley, the veteran auto executive reiterated to Jim that he still expects free cash flow of $6 billion in 2023, nearly double Wall Street’s forecast. “What right do I have to doubt Jim Farley?” Jim said Tuesday. The Ford CEO also told Jim that the automaker found that demand outpaced product supply, forcing the company to ramp up production of electric vehicles. Ford shares fell more than 2 percent on Tuesday and have soared more than 20 percent so far this year. Jim’s full interview with Farley will air Tuesday night on “Mad Money.” (Jim Cramer’s charitable trust bought NVDA, F. For a full list of stocks, see here.) As a subscriber to Jim Cramer’s CNBC Investing Club, You will receive trade alerts before Jim Cramer makes the trade. Jim waits 45 minutes after a trade alert is sent before buying or selling stock in his charitable trust portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after sending out a trade alert before executing the trade. The investment club information above is subject to our terms and conditions and privacy policy and our disclaimer. No fiduciary duty or obligation exists or arises upon your receipt of any information in connection with Investment Club. No specific results or profits guaranteed.
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