Investors should trim their Goldman Sachs holdings ahead of Tuesday’s earnings report, Cramer said during Monday’s Stop Trading!. A key upgrade pushed the stock higher today, and he’s concerned about post-quarter profit taking.
Respected analyst Meredith Whitney today rated Goldman Sachs a buy, telling CNBC that she expects the bank to announce better-than-expected numbers. GS climbed more than $7 as a result. But that’s why Cramer urged caution going into the report, saying he didn’t endorse piling into a stock after such a big move.
“It probably will be a pretty good quarter,” the Mad Money host said. “Is there anyone who doesn’t know that?”
Elsewhere in the market, falling as prices are starting to affect the economy and the market, Cramer said. He pointed to a number of upgrades in economically sensitive companies – Best Buy, SanDisk, even Rockwell Automation – as proof. The seeming change in sentiment comes after what has been a largely negative recent weeks on Wall Street.
“When we hear this kind of thing, what we say is, ‘Wow, maybe things aren’t as bad,’” Cramer said. “‘Maybe they’re getting better.’”
Cramer's charitable trust owns Goldman Sachs.
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