Jim Cramer knew that part of the market was becoming too hot to handle. All the froth in the biotech sector last week tipped him off, and despite all of the flack he received over it, on Friday he made a bold call to advise investors to not buy biotechs.
Sure enough, turns out the "Mad Money" host was right.
Now, he's making another bold call—the whole market is too hot to handle right now. He compared it to eggs on a griddle that is so hot that nine seconds delivers a perfectly cooked sunny-side up, but 10 seconds renders a burned mess.
"This week we're witnessing the results of a griddle that hot, too hot, a genuine inferno, and those eggs are now charred beyond all recognition," Cramer said.
In Cramer's perspective, he is seeing that the market leaders are retreating, especially in the biotech and tech sectors. Even the industrials are starting to pull back, thanks to a weak durable goods number released on Wednesday.