Wait for a price break next week while the market is overbought

CNBC’s Jim Cramer on Friday gave his game plan for the week ahead, encouraging investors to cool off while the market is so overbought.

“I think it will be worth your while to wait for a price break before pulling the trigger,” Cramer said. “There are plenty of high-quality stocks that could still fall big in a favorable environment, like the health insurers this week – more on that later – or the semiconductors last week, so I’m sure you’ll get the chance to buy something good on weakness, so why not wait?”

While the market is closed Monday for the Juneteenth holiday, Cramer will watch Raytheon’s performance at the Paris Air Show. He expects positive results due to the high demand for global travel after Covid.

FedEx is due to report earnings on Tuesday, and Cramer said he believes the company has “one of the most exciting situations in the entire market,” due to new CEO Raj Subramaniam and its surge in e-commerce in recent months.

Wednesday will bring an analyst meeting from Dollar Tree, which Cramer said just reported one of its worst quarters of the year. He believes a comeback may be possible, but not without a concrete action plan. Elsewhere, homebuilder KB Home will report Wednesday after the close, and Cramer expects results to be similar to the positive results recently reported by its peer, Lennar.

On Thursday, Cramer will be focused on Olive Garden parent Darden’s earnings report, as well as investor meetings from software companies Samsara and MongoDB. He expects all three names to tell positive stories, especially Darden, as he believes people will continue to spend on eating out.

Cramer believes CarMax’s earnings report on Friday will show that used car prices are going down, which he said is a good sign for the company.

Cramer’s bottom line?

“When I say the market gives you chances to get in, I’m reminded of how there are violent moves that keep happening, and that’s when you trade,” he said. “The pattern is simple: emotional horror show followed by rational buying, which is still a very good setup, actually.”

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