Stocks roared higher on Tuesday, but Jim Cramer worried that issues brewing in the market could deflate the rally.
"If you own a lot of stock, I say hold on. But if you are trying to get in, I suggest that you wait for better prices before pulling the trigger," the "Mad Money" host said.
Cramer outlined what he's watching for 2017, starting with immediate issues. The first on his list is that the market needs money to maintain its advance. Historically, the first day of the year rallies from extensive 401(k) investments.
"I think that played a very big role in the market's ability to rally today. It's a great sign that this trend continued despite, one, the big run in the market in 2016 … and two, many individuals who didn't sell in 2016 believing that capital gains taxes much come down in 2017 under President Trump," Cramer said.
Another immediate worry for Cramer is the impact that oil still has on the stock market. The market was flying on Tuesday until oil reversed and dropped, and took some stocks down with it. The fact that oil could still impact stocks speaks to the newfound fragility of the market rally.
Many of 2016's losers figured heavily into the upside on Monday, too. Drug companies like Merck and Celgene bounced back hard, which signaled to Cramer that there could be brighter days ahead for this group that was troubled last year. Still, Cramer warned it remains one Trump tweet away from a sell-off.
In the bigger picture, Cramer wondered if the Trump rally can really last.
"One of the reasons why I think you might get a better opportunity to buy stocks than you had today is that I sense the Republicans may not be totally enthused about Trump's desire to pass corporate tax reform, deregulation and a tax holiday for the repatriation of foreign assets," Cramer said.
The actions taken by House Republicans to back down from a measure to curb the Office of Congressional Ethics after Trump tweeted his disapproval, suggested to Cramer that Congress' priorities may be different than Trump's.
That could be very negative for stocks.
While Cramer suspects that many companies are doing better than expected after the post-election rally, Cramer isn't naive. He knows the dollar has strengthened, which could lead to numbers being slashed for international companies.
"In the end, there is simply not a lot of room for error in terms of the timeframe," Cramer said.