CNBC’s Jim Cramer on Tuesday revealed he not too long ago trimmed holdings in his charitable belief forward of earnings season as he grows extra involved about potential market headwinds.

The fund, ActionAlertsPlus.com, trimmed roughly $100,000 from its holdings partly due to the problems, he stated.

“I am not a bear, however there are reliable considerations right here, which is why we offered a bunch of inventory for my charitable belief on the eve of that convention name I gave final week,” he stated on “Mad Money.” “This market can deal with one and even two of those potential issues, however it may well’t deal with all of them.”

Cramer laid out seven considerations that he has. Under are key takeaways which can be driving his ambivalence:

Earnings outcomes

“This week we now have financial institution earnings and people shares have run a lot that their numbers must be borderline excellent,” Cramer stated. “Name me involved that this red-hot group might damage the tenor of earnings season.”

Inflation

“I believe [Federal Reserve Chair] Jay Powell is true that the present inflation spike is transitory,” he stated. “I do not assume we’ll need to tighten any time quickly due to inflation, however I have been unsuitable earlier than, and it is a reliable concern whilst the buyer value index numbers this morning do not appear all that worrisome.”

Inventory glut

“We have had so many IPOs and so many SPAC offers that I am anxious concerning the prospect of a $100 billion direct itemizing [from Coinbase] sucking cash from all the things else,” Cramer stated. “An excessive amount of provide, too many questions, not sufficient self-discipline.”

Covid-19

“We have gotten complacent about Covid,” the previous hedge fund supervisor stated. “I do know persons are sick of quarantining, and vaccinations — save [Johnson & Johnson] — [are] going fairly nicely, although we’re not out of the woods.”

S&P oscillator

“We’re certainly overbought on the S&P oscillator that I swear by,” he stated. “We have had an unbelievable run, and I would really feel a lot, far more snug if we comply with that up with a mild decline quite than some type of cliff bounce. The longer the market stays overbought, the extra anxious I get.”

Semiconductor scarcity

“These shortages actually do fear me, particularly the semiconductor scarcity. With out chips, there is not something most producers can do to spice up manufacturing,” Cramer stated.

Overseas coverage

“Now we have a brand new president and it looks like everybody, from Iran to North Korea to Russia and even China, desires to check his resolve. I am most anxious about China, which appears decided to point out Biden that it would not need to hear something about human rights or it is going to make a transfer on Taiwan,” he stated. “To me, this potential flashpoint is essentially the most harmful storyline on this planet proper now.”

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