CNBC's Jim Cramer mentioned Tuesday he was staying cautious on stocks, however confused he's not giving up on the bull market.
"I'm not a bear. I'm neutral for the moment. I'm just waiting to have something to hang my hat on before I pull the trigger," the "Mad Money" host mentioned.
"Lots of unseasoned players in this market keep mistaking my caution for a belief that the whole market's headed down. I simply want to lessen the chances that the stock market gets hammered" after shopping for a inventory, Cramer mentioned.
Big image, Cramer mentioned his hesitancy stems partly from the very fact he's undecided whether or not three main overhangs — rising inflation, the coronavirus delta variant and a change to Federal Reserve coverage — have actually been resolved within the close to time period.
"Is [the Fed] really on hold?" Cramer requested rhetorically. "I thought they were on hold because of worries about the delta variant. If Covid peaks, there's a chance they could start talking about tightening again, even as I know [Chairman] Jay Powell would prefer not to. Unfortunately, the data might make that difficult, unless inflation really has peaked, in which case the Fed's no longer a problem."
"Here's the issue: I've got no conviction about any of those scenarios. They're possible," Cramer acknowledged. However, Cramer mentioned he has "no idea" whether or not they're possible, which elements into his cautious view this month.
September is a traditionally robust month for stocks, a truth Cramer has identified persistently in latest days because the market has struggled. The Dow Jones Industrial Average is down 2.2% this month, whereas the broad S&P 500 and tech-heavy Nasdaq Composite have slid greater than 1%.
As for when it could lastly be time to buy, Cramer mentioned he'll be in search of moments when a inventory doesn’t decline on unhealthy information and nonetheless doesn’t fall the subsequent day when that very same unhealthy information is highlighted by fairness analysts.
"That does tell you the pain is over," he mentioned. However, we might have to wait till the second week of October, when the interval of most seasonal ache … is completed," Cramer added. "Finally, let's simply say, we want stocks to cease struggling massive declines on nothing."
Cramer says he's lacking conviction to buy stocks and is 'neutral' on the marketMad Money with Jim Cramer
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