Cramer Remix: Why good news is not good for Apple
It's never a good thing for the stock market to go in hot into earnings season , Jim Cramer says.
"We want things cool. There is too much heat. That is why I'm hoping we get some more down days this week, just in case the earnings aren't as perfect as they need to be after this historic run," the " Mad Money " host said.
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Looking at the overall context of the market, Cramer wasn't impressed. In fact, he thinks that is the major reason why the Dow (Dow Jones Global Indexes: .DJI) failed to hit 20,000 again.
Cramer was especially worried about technology, even Apple (AAPL), which was anointed as a top pick by Morgan Stanley because of the impending iPhone 8 and the possibility of repatriation relief.
"I much prefer downbeat talk that keeps expectations low," Cramer said.
That is why moving into earnings season, Cramer is hoping for more downgrades and negativity in the stock market in general. More sell ratings could create much-needed pessimism to cool stocks down.
While the market continues to focus on whether the Dow Jones industrial average (Dow Jones Global Indexes: .DJI) will hit 20,000, Cramer would rather look at how conceivable it is for the Dow to keep running after it does.
Good news is that he does think it is possible.
"When you look at how far stocks would need to rally to get back to their all-time highs, you will find that many of these Dow names have been much higher in less fortuitous circumstances," Cramer said.
Cramer boiled it down to 12 encouraging stocks that must advance more than 10 percent to get back to their old highs.
Cramer has always said that the humanization of pets is one of the greatest investing themes out there. But he still didn't see it coming when privately held food giant Mars paid a huge premium for Veterinary Centers of America (WOOF), known as VCA.
VCA shareholders received a 31 percent gain on Monday with Mars' $7.7 billion bid. Mars plans to pair the business with its Banfield pet hospital chain to create a dominant health care company for companion animals.
However, Cramer warned that this doesn't mean the rest of the pet players could have the same fortune.
"I don't think the other companies in the space are takeover targets, although I do think that Idexx (IDXX) can work its way higher over time," Cramer said,
Johnson Controls (JCI) has also undergone a huge transformation from where it was a year ago.
The diversified industrial company closed on its massive merger with Tyco in September, which gave it exposure to security and safety. This was also a tax inversion deal that Johnson Controls to change its domicile to Ireland.