CNBC’s Jim Cramer lamented Monday’s stock rally.
“Another day, another rally where stocks, frankly, don’t rise to anything,” he saidBad money“said the host.” Sometimes stocks deserve not rising to anything, but it still seems a little questionable how stocks float like they do here. “
“We saw multiple expansion today as Wall Street was hyped about the best of the best,” he added.
Apple, which hosts annual product launches in the second half of the year, will showcase the latest iPhone in a virtual event on Tuesday. Amazon Prime Day, the deal event that will be held for the second year in a row over two days, starts on Tuesday.
Wedbush Securities published an article on Monday expecting the tech giant to receive a boost from consumers through a potentially large iPhone upgrade cycle. Cramer believes the analyst release raised the bar too high for Apple, whose earnings of 6.35% on the day led the market higher and opened up the possibility of disappointment.
Cramer also criticized another note from Cowen, in which an analyst predicted a “surge in demand” for Amazon on Prime Day and this Christmas season. The host said the information “brought nothing new to the table” and that it would be “harder for Amazon to live up to the hype” after its stock rose 4.75% on Monday.
“Today’s rally was really based on hope and hype, not new facts,” said Cramer. “Can we go higher? Sure, but these prices are thin reeds that make me pull my horns. When everyone starts to agree with you … then you need to be more careful and not exuberant.”
Disclosure: Cramer’s charitable foundation owns shares in Apple and Amazon.