CNBC’s Jim Cramer advises investors to hold off from putting new money to work as stocks pull back from their record highs. The “Mad Money” host breaks down why Elizabeth Warren’s back peddle on her health care proposal is a boon for the managed-care stock of United Health. Later in the show, he takes a look at chart analysis from trader Larry Williams to get a read on the negative trading that is likely ahead in the S&P 500’s future.
Put a pause on buying new stocks
Traders and financial professionals work on the floor of the New York Stock Exchange.
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“We got hammered today,” Cramer said on “Mad Money,” “and it was much more of a hammering than any of the averages [appeared], because there’s not enough negativity. Once people start worrying again, stocks will come down to more reasonable levels and then you can pounce, but we’re not there yet.”
Elizabeth Warren’s softer stance on health care gives UnitedHealth a break
Democratic presidential candidate Sen. Elizabeth Warren (D-MA), speaks at a campaign event at Clark Atlanta University on November 21, 2019 in Atlanta, Georgia.
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Warren’s platform has called for the elimination of private health insurance, like UnitedHealth, and replacing it with a universal Medicare plan for all Americans.
However, Warren said last month that she wouldn’t immediately transfer to a single-payer system. Instead, she would push to pass a bill to allow all Americans to either buy into Medicare or get covered for free through special budget rules. She wouldn’t move to eliminate private insurance until her third year.
Charting a decline in the S&P 500
Traders work on the floor of the New York Stock Exchange.
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Cramer’s lightning round
In Cramer’s lightning round, the “Mad Money” host zips through his thoughts about callers’ favorite stock picks of the day.
Biogen: An analyst said earlier Monday that Biogen’s Alzheimer’s drug “is going to be a bust and that makes it so that I am concerned because there’s no reason to stick your neck out like that, unless you kind of know something, or otherwise you got egg all over his face.”
Amgen: “I think if you want to buy Amgen — you get a chance to be able to buy it at $210 and I would take it because it’s a much-better company than it was even six months ago.”
Caterpillar: “I think you want to sell some, trade around it if you are a trader, and then buy it back later. Now, why do I say that: because I don’t think Caterpillar’s going to have a good quarter and I am worried about more trade tariffs.”
Disclosure: Cramer’s charitable trust owns shares of UnitedHealth.