Jim Cramer reveals 7 stock market concerns going into earnings season

CNBC’s Jim Cramer on Tuesday disclosed he a short while ago trimmed holdings in his charitable have faith in in advance of earnings year as he grows more concerned about probable sector headwinds.

The fund, ActionAlertsPlus.com, trimmed around $100,000 from its holdings in portion simply because of the challenges, he explained.

“I am not a bear, but there are authentic concerns here, which is why we sold a bunch of stock for my charitable trust on the eve of that meeting phone I gave previous week,” he claimed on “Mad Revenue.” “This current market can tackle a single or even two of these prospective troubles, but it are unable to deal with all of them.”

Cramer laid out seven concerns that he has. Below are critical takeaways that are driving his ambivalence:

Earnings effects

“This 7 days we have lender earnings and those shares have operate so considerably that their quantities need to be borderline fantastic,” Cramer mentioned. “Contact me concerned that this crimson-warm team could damage the tenor of earnings year.”

Inflation

“I imagine [Federal Reserve Chair] Jay Powell is appropriate that the existing inflation spike is transitory,” he claimed. “I will not think we are going to have to tighten any time shortly since of inflation, but I have been mistaken right before, and this is a genuine issue even as the client cost index numbers this early morning really don’t appear all that worrisome.”

Stock glut

“We have experienced so many IPOs and so quite a few SPAC specials that I’m fearful about the prospect of a $100 billion direct listing [from Coinbase] sucking dollars from every little thing else,” Cramer mentioned. “Way too a great deal supply, way too numerous questions, not enough discipline.”

Covid-19

“We’ve gotten complacent about Covid,” the previous hedge fund supervisor said. “I know men and women are sick of quarantining, and vaccinations — help you save [Johnson & Johnson] — [are] likely really well, however we’re not out of the woods.”

S&P oscillator

“We are indeed overbought on the S&P oscillator that I swear by,” he claimed. “We have had an unbelievable operate, and I might really feel a great deal, significantly extra at ease if we comply with that up with a light decrease alternatively than some kind of cliff bounce. The extended the current market stays overbought, the a lot more anxious I get.”

Semiconductor shortage

“These shortages actually do be concerned me, primarily the semiconductor scarcity. Devoid of chips, there isn’t nearly anything most suppliers can do to increase creation,” Cramer explained.

Foreign coverage

“We have a new president and it feels like everybody, from Iran to North Korea to Russia and even China, wants to check his resolve. I’m most apprehensive about China, which looks identified to display Biden that it won’t want to listen to anything about human legal rights or it will make a shift on Taiwan,” he said. “To me, this likely flashpoint is the most risky storyline in the entire world right now.”