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Home » Jim Cramer says the stock market is overbought and we need to tread carefully.
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Jim Cramer says the stock market is overbought and we need to tread carefully.

adminBy adminApril 15, 2026No Comments3 Mins Read
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Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream weekdays at 10:20 a.m. ET. A recap of Wednesday’s key moments. 1. The major averages were mixed on Wednesday. The blue-chip Dow Jones Industrial Average fell about 200 points, while the S&P 500 index rose about 0.3%. Leading the way was the Nasdaq, up nearly 1%. The tech-heavy index hasn’t seen a decline since March 30. Bond markets have calmed down again, continuing to give stock prices the breathing room they need, Jim Cramer said. Oil prices also didn’t rise much, with U.S. benchmark WTI crude gaining just 30 cents a barrel, still below $92. The big thing we’re watching: Our trusted S&P short-range oscillator has moved into extremely overbought territory at +8% or more thanks to this quick and strong rally. When things got very oversold in March, we held back and made a few purchases. When an oscillator is this overbought, you need to take a “slightly different strategy,” Jim said. According to the Market Edge team behind the oscillator, history suggests that gains will slow from here. In other words, Jim said, “It was easy money.” 2. The “different strategy” that Jim alluded to involves some adjustments. So I sold some more Broadcom on Wednesday, just like I did on Monday morning. The stock has gone parabolic since the market bottom on March 30, rising more than 30%. “Discipline always trumps belief,” Jim said. Broadcom rose more than 3% in Wednesday trading after the chipmaker announced a new major deal with Meta Inc. for custom AI processors. Broadcom CEO Hock Tan also announced he would step down from Meta’s board after two years on the job, a move Jim praised given the increasingly close business relationship between the two companies. “I think Hock is doing the right thing,” Jim said. 3. Jim and Director of Portfolio Analysis Jeff Marks also spent some time discussing the club name meta behind the deal. The company’s stock price closed at a 2026 low on March 27, before beginning a rally of its own. Including Wednesday’s more than 1.5% rise, the stock is up about 28% from its bottom. Jim said he was encouraged to see Meta embark on such a big move, given all the questions surrounding the stock regarding aggressive spending on AI talent. Last week, the company announced the first model created by its AI team, Muse Spark. To date, Meta’s AI investments have paid off by strengthening its core advertising business. Now, Jeff said, they have a smart plan to monetize the Muse Spark model directly. 4. Stocks featured at the end of Wednesday’s video are Morgan Stanley, ASML, Bank of America, Cloudflare, and Snap. (Jim Cramer’s charitable trusts are long AVGO and META. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.



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