Every time the stock market rallies hard, like it did this week, Jim Cramer can count on investors to get sloppy and carried away.
"As much as you may like this market, you have to stay disciplined. Remember, discipline trumps conviction," the "Mad Money" host said.
The first sign of sloppiness for Cramer was with takeovers. On Thursday morning, the Financial Times reported that Apple has been in talks to acquire Time Warner. At the same time, Cramer heard chatter that Apple is also eyeing Netflix.
Cramer has advocated for Apple to buy Netflix for a long time. In fact, if he were doing the deal, he would keep Reed Hastings as CEO of Netflix. He also thought Time Warner would be a great match for Apple, as HBO would be great for the company. But that is no reason to buy the stocks.
"If you bought either Netflix or Time Warner when their stocks were running off the unfounded takeover rumors this morning, you need to get your head checked and call a time out. You need to cool off. Go get an ice cream or something," Cramer said.
The essence of sloppiness that Cramer senses in the market right now is to let everything ride. But right now, it could make more sense to take some off the table.
"I want you to look at your portfolio in order to decide what has moved too much so you can ring the register on part of your position. No, I am not bearish. I see plenty of strength out there in tech and finance, the two pillars of this very real, very broad rally," Cramer said.