What Cramer is watching Tuesday — David Tepper makes a big call, Cathie Wood under fire

Published Tue, May 10 20229:39 AM EDTUpdated Tue, May 10 20222:20 PM EDT

What I am looking at May 10, 2022 Watching the collapse of the Cathie Wood stocks and the remarkable insistence to keep buying them endlessly. They are at the heart of the blast zone and even though the Ark Invest CEO is running an active ETF, she is being shot against every day by sellers and short-sellers. I know what it is like to be shot against even though I wasn't running an ETF. Enough with the decision to call it something other than a hedge fund. Example: Wood keeps buying DraftKings (DKNG) and shorts keep trying to break her ... stock down after a decent quarter. David Tepper — forced sellers often equals bottoms. Yesterday, a huge number of forced bottoms. This sell-off began in November when we pulled out of the intangible and went for the tangible. The hedge-fund manager is now covering shorts in the Nasdaq, a buyer if the S & P falls to 3,600 to 3,500. The index dropped below the 4,000 level Monday, its lowest level in more than a year. SPX down 17% from 52-week high, Nasdaq down 27%. Biohaven Pharmaceutical (BHVN), one of my absolute favorites, gets bid from Pfizer (PFE) in a deal worth $11.6 billion. Shares jumped more than 70% in premarket trading. As a user, I have reiterated over and over again that Biohaven makes a miracle drug for migraines. Shareholders will receive $148.50 per share in cash and stock. Used car prices are down 6.4% from January record high, according to the Manheim Used Vehicle Value Index. However, prices still up 14% from a year ago. Upstart (UPST) turns out to have bad loan exposure on the books. Shares of the AI-powered lending platform plummeted more than 50% in the premarket. We have on Mad Money tonight. Piper Sandler, Citi go to neutral and Stephens goes to sell. Snowflake (SNOW) price target lowered to $300 from $350 at Truist, but keeps a buy rating. Investing Club turning more bullish as we are now minus 6 and change on the S & P Oscillator. Only wrong twice in thirty years. Affirm (AFRM) downgraded to sell at Stephens. Credit risk? Rockwell Automation (ROK) price target cut to $240 from $293 at HSBC ... surprising miss on Q2 results. ABS (asset-backed securities) credit risk — is that the Carvana (CVNA) used car problem. Raised cash but will need every penny as equity deal not cut in half. Roblox (RBLX): Wedbush starts with a neutral, "love-hate relationship" with gaming company. Reports tomorrow … Part of the downturn? Microchip (MCHP) reports good numbers, but all you get is PT cuts. EOG Resources (EOG) upgraded to strong buy from a buy at Raymond James. Palantir (PLTR) price target lowered to $7 from $10. Collapse of an old Cathie Wood name. The fall of GoodRx (GDRX): What really happened here? Downgrades by Raymond James, RBC Capital, Evercore ISI and SVB Leerink. Large grocery chain dropped company, trying to figure out who it is. Citi says buy Coty on weakness as the selling is overdone. Citi raises numbers for health insurer Cigna (CI) — group is very strong. Plug Power (PLUG) reaffirms 2025 targets to achieve $3 billion in annual sales. But missed on top and bottom lines. Collapse of bitcoin — is it just a super Nasdaq? Robinhood (HOOD) caught up deeply in this. Bitcoin people are never wrong. Pretty amazing how you can be never wrong. Terra's UST token sank below 70 cents late Monday, as holders continued to flee the controversial stablecoin. MicroStrategy (MSTR) no margin call until bitcoin hits $21,000. Coinbase (COIN) PT lowered to $160 from $225 at DA Davidson. Horrendous. Papa John's (PZZA) is now crushing Pizza Hut and Domino's (DPZ). Pizza Hut is underperforming terribly and Dominos can't find the drivers. The big SPAC pullout — Goldman Sachs VIX did not take out high, it's usually a sign of the beginning of the bottom ... but so much destruction. Roth Capital upgrades LivePerson (LPSN) to a buy after decent quarter. Amgen (AMGN) PT raised to $208 from $202 at Mizuho, but keeps a neutral rating. Talks about cholesterol drug Repatha being a blockbuster. RingCentral (RNG) beats, but multiple PT cuts ... no end to this. Oppenheimer upgrades to outperform from perform. Under Armour (UA) target to $14 from $22 at Barclays, but stays long. Bausch Companies (BHC) management totally blew this it is now under review by us because of feckless decisions by CEO Joe Papa. Peloton (PTON) reports weak sales, cash dwindles. CEO says company is thinly capitalized. Cloudflare (NET) cut to $100 from $140 at Truist. NET is solid as a rock. (Jim Cramer's Charitable Trust is long BHC. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. 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Catherine Wood, chief executive officer of ARK Investment Management LLC, speaks during the Milken Institute Global Conference in Beverly Hills, California, on Monday, Oct. 18, 2021.

Kyle Grillot | Bloomberg | Getty Images

What I am looking at May 10, 2022

Watching the collapse of the Cathie Wood stocks and the remarkable insistence to keep buying them endlessly. They are at the heart of the blast zone and even though the Ark Invest CEO is running an active ETF, she is being shot against every day by sellers and short-sellers. I know what it is like to be shot against even though I wasn't running an ETF. Enough with the decision to call it something other than a hedge fund.