PWSHub News

Despite weeks of gains, Cramer doesn't see a market-wide decline soon

Investors buying Arm at this price point 'truly have no idea what they're doing', says Jim Cramer

CNBC's Jim Cramer on Monday said he doesn't see a market decline coming soon.

After weeks of huge gains for the major indexes, Cramer said this momentum may last longer than some think, and sellers aren't eager to get out just yet.

"Without huge chunks of selling, we aren't gonna have that decline," he said. "Too many people want in and haven't had the chance. Too few want to get out."

Cramer conceded that there are reasons for investors to worry about market froth.

For example, semiconductor company Arm has sustained its rally since reporting earnings last week, with shares doubling since before the report. Airbnb rallied today without a clear impetus, which led Cramer to believe it was fueled by "pure momentum."

To Cramer, Nvidia stock has hit levels higher than many may have thought possible. Even though that kind of feels unsustainable, he said he's not sure if the stock will see a pullback just yet because it dominates the powerful artificial intelligence sector.

These "individual signs of excess" don't necessarily mean the rally is close to being over, he said.

"Who wants to walk away from a hot hand, a hot table, a hot dealer and go buy that cashmere sweater I always talk about?" Cramer asked. "Nobody, even when it's the responsible thing to do, at least for some of your cash."

Without huge chunks of sellers we won't see a big decline anytime soon, says Jim Cramer

Jim Cramer's Guide to Investing

Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.

Disclaimer The CNBC Investing Club Charitable Trust holds shares of Nvidia.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram

Questions, comments, suggestions for the "Mad Money" website?


Related stories
1 week ago - Discover why Alphabet, Palantir, and Nvidia might be tech stocks to sell in early 2024 as we uncover the risks lurking beneath the surface.
2 weeks ago - Expedia (EXPE) announced a CEO change late Thursday while beating earnings estimates for the fourth quarter. Expedia stock tanked in extended...
6 days ago - US stocks closed in the red on Tuesday as investors looked to big retailer earnings to provide insight into consumer resilience amid doubts about the odds of a "soft landing." The tech-heavy Nasdaq Composite (^IXIC) led the declines,...
1 week ago - There are several big milestones approaching for the EV maker February 13, 2024 Feb 14, 2024, 6:00 am EST February 13,...
Other stories
25 seconds ago - The question may not be whether the economy enters a Goldilocks scenario but a red-hot return to the Roaring '20s fueled by AI, UBS said.
32 minutes ago - Hedge funds piled into tech stocks in the weeks before Nvidia Corp. earnings. Now, they’re cashing out and selling at the fastest pace in seven months.
32 minutes ago - The following charts, updated after each Powerball lottery drawing, help you see which numbers have a better chance of rolling out because they haven't hit for weeks or haven't rolled out as frequently in the last 100 games. Powerball...
45 minutes ago - Hedge funds that piled into the tech trade leading up to Nvidia's earnings are cashing out at the fastest pace in more than seven months.
1 hour ago - Charter Communications Inc. is exploring a takeover of smaller cable provider Altice USA Inc., according to people with knowledge of the matter.
1 hour ago - Zoom's growth has moderated dramatically since the pandemic, and the company is projecting a revenue increase of less than 2% for the current fiscal year.