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Jim Cramer is sounding the alarm, but not in the way you might expect. For those who are bullish on Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL), Cramer’s latest opinion may be difficult to swallow.
Nvidia loses hot money from Apple
“Hot money is flowing into China from Nvidia and Apple,” Cramer said in a tweet. Please let me stream it. Don’t defend these now. Please keep this money. In China, BABA is the only one with the real fundamentals if you need it…but let’s wait for it to rain here. Take advantage of all of these short Nvidia options and ETFs. ”
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What’s the logic? Cramer hinted that Nvidia’s high valuation and Apple’s post-iPhone slump could leave the company vulnerable to short-term pain. If you own Nvidia options or ETFs, Cramer thinks you might want to ride the short wave.
Cramer’s proposal is a subtle signal that a pullback may be on the horizon, especially as investor sentiment has shifted and valuations look even more strained than Friday night’s binge. is.
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Only Alibaba has real fundamentals, says Jim Cramer
Meanwhile, where should more adventurous traders look? Amid the capital flight to China, Kramer says one Chinese giant worth considering is Alibaba Group Holdings (NYSE:BABA)(NYSE: There is only one company, BABAF).
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The e-commerce giant is supported by strong fundamentals even as it faces regulatory hurdles. GraniteShares 2x Long BABA Daily ETF (NASDAQ:BABX) provides leveraged exposure to Alibaba stock. Other ETFs with significant allocations to Alibaba stocks in their portfolios include iShares MSCI China ETF (NASDAQ:MCHI) (8.96% Alibaba shares) and iShares China Large Cap ETF (NYSE:FXI) (9.03% Alibaba shares). %), and KraneShares CSI. China Internet ETF (NYSE:KWEB) (11.05% allocated to Alibaba stock).
If you need to enter the Chinese market, BABA may be your best bet. However, don’t expect it to be smooth sailing.
Cramer’s latest recommendation suggests being patient with Nvidia and Apple, giving short sellers time, and keeping an eye on Alibaba’s potential rebound with cautious interest.
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This article, Cramer says ‘hot money’ flows into China from Nvidia, Apple, focuses on Alibaba’s ‘If You Must’, originally appeared on Benzinga.com
