Forget about using the futures market as a weathervane, Jim Cramer told his Mad Money viewers Monday. Use it instead as a buying opportunity.
On Monday, in the early pre-market, the futures signaled a weak opening for stocks. But Cramer noted that these futures are thinly traded and are often dead wrong, as they were today.
That doesnt mean the futures are worthless, however. When used opportunistically, Cramer said, they can create great bargains.
It all starts with your world view. Cramer explained that his world view for the next six months is positive. We have mostly transitory inflation, gridlock in Congress and great earnings. Theres also a ton of new money coming into the market, which doesnt signal a top, it signals that stocks are still the only game in town with bond yields so low.
So when the futures send shares of Walt Disney (DIS) - Get Walt Disney Company Report lower, thats the time to pounce. Shares of Disney closed up 4% by the close thanks to a strong opening weekend for the movie Black Widow.
The futures markets also created an opportunity to trade both Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report and JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report, Cramer added. Both stocks were sharply lower at the open, only to rebound hard by the close.
As long as youre opportunistic, and dont buy all at once, Cramer said the futures are a great way to snap up bargains. Just never use them as a gauge of where the markets are headed next. Use your intuition and your world view for that.
Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. Find out what theyre telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Cramers Agenda for the SEC
Now that Securities and Exchange Commission Chairman Gary Gensler has had a few months to settle into his new post, Cramer said its time for the regulatory agency to get to work, and boy, do they have a lot on their plates.
Topping Cramers wish list of priorities the SEC must address as soon as possible is cracking down on Chinese IPOs. Chinese companies simply dont need to abide by U.S. accounting rules and most companies are far inferior to their U.S. counterparts. Cramer said hed ban all Chinese IPOs that fail to comply with our rules.
Over on Real Money, Cramer says he doesnt know why the U.S. government doesnt demand the same level of disclosure for Chinese IPOS that it insists U.S. companies give. Why should we let the Chinese off the hook? Read more of his investing insights in The Didi Fiasco Makes Clear Not to Invest in Chinese IPOs.
Second, Cramer said the SEC needs to take ownership over cryptocurrencies and ensure transparency and a level playing field for all investors. Next, he would crack down on digital pump-and-dump schemes that recently took up shares of Wendys (WEN) - Get Wendys Company Report and NewEgg (NEGG) - Get NEWEGG COMMERCE, INC. Report, only to see shares crash back down after the pumpers exited with their winnings.
Cramer said the SEC must also tackle institutional manipulation. Hedge funds are being allowed to borrow far too much money with excess leverage and every time a firm goes belly-up, we all pay the price.
Rounding out Cramer s list of priorities were crackdowns on SPACs, many of which have no real business, only hopes and dreams. Hed also clamp down on robotic trading that shuts out individual investors who cant access the markets in milliseconds.
Finally, hed add new rules for members of Congress, who are profiting while serving thanks to blind trusts and shell corporations.
Best Ways to Invest in Solar
With environmental social governance activists putting pressure on companies to address climate change, and our failing electric grid creating more and more prolonged power outages, the demand for solar energy is only getting bigger. Cramer offered up his list of the best ways to invest in the sector.
First on Cramers list was First Solar (FSLR) - Get First Solar, Inc. Report, which has avoided tariffs by making its proprietary panels right here in the U.S. With the companys 2021 production sold out, along with most of its 2022 production as well, Cramer said First Solar is a buy, even trading at 21 times earnings.
Third was generator maker Generac Holdings (GNRC) - Get Generac Holdings Inc. Report, which in addition to gas-powered generators, also makes solar and battery backup solutions to help homes and businesses weather storms and prolonged outages.
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: MongoDB
Ittycheria said its been five years since MongoDB unveiled Atlas, its cloud database platform. Today, Atlas is the majority of its business, growing at 73% year-over-year.
MongoDB software has been downloaded over 180 million times, Ittycheria added, which is an impressive feat given there are only 25 million developers worldwide. People choose MongoDB for its flexibility, scalability and performance, he said.
When asked about profitability, Ittycheria said it would be silly for MongoDB to optimize on profits given the opportunity still in front of the company. They will continue to focus on expanding reach and building market share for the foreseeable future.
The Impact of Irrational Behavior
In his No Huddle Offense segment, Cramer reminded viewers that sometimes people dont behave rationally. Case in point: vaccines. No one wants to get COVID, so it seems rational to think that everyone would want to get the COVID vaccine. Yet our country is still only 50% vaccinated thanks to skepticism and conspiracy theories.
Irrational behavior is hard to model, Cramer concluded. We simply cant know when things will return to normal, or when people will go back to work, or if those who dont go back will lose their jobs. Thats why this quarters earnings season is so important. Its when companies will provide us with more clarity on what the second half of this year might look like.
Heres what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:
FireEye (FEYE) - Get FireEye, Inc. Report: Right now you want CrowdStrike (CRWD) - Get CrowdStrike Holdings, Inc. Class A Report, Zscaler (ZS) - Get Zscaler, Inc. Report and Palo Alto Networks (PANW) - Get Palo Alto Networks, Inc. Report.
Search Jim Cramers Mad Money trading recommendations using our exclusive Mad Money Stock Screener.
To watch replays of Cramers video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramers free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramers Action Alerts PLUS had a position in the stocks mentioned.
Find us at the office
Trailor- Verkamp street no. 63, 81415 Zagreb, Croatia
Give us a ring
+38 695 645 231
Mon - Fri, 8:00-22:00