Jim Cramer lists positive and negative themes shaping market action

According to CNBC’s Jim Cramer, this market is hard to pin down. On Wednesday he described a fraught environment, highlighting both positive and negative themes that are driving the action.

“It’s mixed. Some good, some bad…When it gets all good, it will be too good. When it gets all bad, it’ll be too bad,” he said. “Maybe right now it’s just right — and we should be skeptical, but not cynical, because there’s too much money being made, and I don’t want you to leave the table.”

Cramer mentioned President Donald Trump’s trade deal with Japan. Trump announced Tuesday that he would implement 15% tariffs on Japanese imports and said the country would invest $550 billion into the U.S. Cramer noted that the new duty is less extreme than Trump’s initial proposal and “something most businesses can live with.” However, he suggested that the deal could be inflationary and discourage the Federal Reserve from cutting interest interest rates.

Cramer said there are some strong themes that could see long-term success, including the data center. He noted that GE Vernova, an energy company that powers much of the new technology, indicated that demand for data center electrification is strong. Although he said there are some investors who are suspicious of the data center buildout and question whether the hyperscalers need so much computing power.

Earnings season has been strong so far, Cramer continued, pointing to success from major banks and healthcare-related companies. Alphabet‘s quarter sent the stock climbing in extended trading on Wednesday, Cramer noted. While not all outfits are beating the estimates, he said the good outweighs the bad.

However, he said there is “froth that feels like the market before the Great Recession hit in 2008, or the dot com period in 1999, or the SPAC and GameStop mania of 2021.” He said there are some investors, including hedge funds, that are “up to speculative things that make my stomach, well, let’s say, churn.” He named recent buying action in legacy department store chain Kohl’s, which has 50% short interest. He said the stock is not a safe short, as it’s too cheap, and the company could still be acquired by a big buyer.

“But away from Kohl’s, we see things happening that if we had a tough SEC, well, we would be against. Many one and two and three dollar stocks are getting bagged, being gunned and, for all I know, being liquidated…for a quick win,” he said. “I don’t want to dignify them with a mention…but I would say that many of these should be investigated. It just doesn’t seem right.”

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Disclaimer The CNBC Investing Club Charitable Trust owns shares of GE Vernova and Alphabet.