Jim Cramer: Profit-Taking Is Healthy

 | Jun 13, 2018 | 1:45 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


















Finally, some profit-takers have emerged.

The retail group's owners have come in with a vengeance to take something off the table. That's actually healthy. The idea that there can be no selling that they can go up every day is unrealistic and I regard some register-ringing as healthy even as you don't think that if you own Burlington (BURL) or PVH (PVH) or Kohl's (KSS) .

At a certain point enough is enough, as we told club members of ActionAlertsPlus.com in our monthly call. We had bought a lot of Kohl's when the stock took a header after the quarter and went down to $60. So even with it down a couple of bucks it seemed reasonable to take some of the table. Remember, bulls make money, bears make money and hogs get slaughtered.

There's profit-taking in the Chinese stocks -- the stocks that seem to do well when it looks like our talks with China are going positively and do horrendously when the talks go bad.

So Caterpillar's (CAT) stock is going down even though its monthly report today was very good and Boeing (BA) is headed south despite endless wins.

All of this could be related to issues with NXP (NXPI) , which still hasn't been able to be bought by Qualcomm (QCOM) . Or it could be ZTE. Or it could be tariffs to be announced Friday.

Or, in the case of Boeing, it could be because of a possible cancellation by Etihad, a flagship Emirates carrier, of a slew of 777s.

I know there's a lot of talk going around that the market's just gone crazy.

Netflix (NFLX) won't quit, galloping higher off of a Goldman note about it being at an inflection point for profits. Tesla (TSLA) is just steam rolling the shorts, this time because the layoffs are supposed to be good, not bad, because they are white collar.

Still, I get it. Rationality dictates periodic selling. When it happens, it is not a cause for panic. It is simply a cause for reflection and prudence as an M.O. on a difficult Fed day and a gauntlet of world trade obstacles that only the most steely-eyed can thread.

Columnist Conversations

Although we did see an initial rally off my original CXO setup, there has been no follow through.  Some w...
on Apr 30 right here in CC, I mentioned buying the Spotify Jul 160 call. It's time to move. We have a nice ...
Some say the Diamonds are a girl's best friend. It might be a trader's best friend as our bounce zone is gett...
Today we'll be discussing a couple of important technical tools, the RSI and money flow.  Join me after t...



News Breaks

Powered by
Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.