Jim Cramer Feels Trump Has 'Single-Handedly' Revived Short-Selling Business But Says 'They Can Lose Big'

CNBC “Mad Money” host Jim Cramer criticized President Donald Trump on Tuesday for confounding the tariff outlook and creating uncertainty in the market.

“When you examine the market’s mistakes, they share a common theme: the president’s distorting pretty much everything, especially with his tariffs and his jingoistic approach to the rest of the world, and it’s continually confounding traders and investors alike,” Cramer said in his show. 

“People would just rather be short; they expect the market to come down every day.”

The stock picker also noted that the market has invariably opened lower in recent sessions, as traders reacted to the president’s “abrupt” statements about trade, China, or corporate names like Apple (AAPL) and Nvidia (NVDA).

On days like Tuesday, when the president is relatively silent, the short bets backfire, he said.

Cramer also stated that Trump has “almost single-handedly revived the short-selling business.”

He opined that short sellers weren’t in charge, but said they “have a lot of firepower and a lot of conviction” because they believe they can’t lose with Trump in the White House.

The CNBC host, however, has a word of caution for these short sellers. 

“These short-sellers, they’ve grown way too confident, and today we found out they can lose big because lots of businesses are doing great,” he said. 

“It’s just that Wall Street only notices on days when the White House doesn’t take up too much bandwidth.”

On Tuesday, stocks ignored a weak start and ended higher for a second straight day amid optimism regarding the tech sector. 

Futures tied to the major indices pointed to a nervous start on Wednesday as traders expressed discomfort at the lack of progress in the U.S.-China trade talks and remained wary about some key data releases.

The Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY) are up 3.3% and 2%, respectively, for the year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: Truth Social Bitcoin ETF? Trump Media’s Latest Crypto Move Ignites Retail Trader Interest

Share

·

Add us on