Big banks kicked off earnings season that has a bang

Thursday’s session signaled in which the market is actually “getting genuinely overexuberant” in addition to the major averages could become wobbly if more IPOs become overvalued within the near future, Cramer said.

Pinterest in addition to Zoom made a big splash in their debuts to public markets, while additional unicorns like Uber in addition to Slack, among others, sit within the pipeline. The Dow Jones Industrial Average added 110 points on the day, the S&P 500 gained 0.16% in addition to the Nasdaq Composite inched 0.2%.

“If we get a few more of these red-hot, yet hopelessly overvalued deals … the averages will start to feel the pressure,” the host said. “in which will lead to a sell-off like we haven’t had in ages as investors dump existing stocks to raise cash for the next big IPO.”

U.S. markets will be closed on Friday in observance of not bad Friday. Cramer said a “crazy week” of trading will follow on Monday. Earnings season has been positive thus far, yet This kind of can be “crushed” by an “avalanche of completely new supply,” he added.

As more than 100 S&P 500 companies report next week, the host warned not to trade stocks off headlines in which look positive or negative because This kind of’s a losing strategy.

“Today we got the first taste of what I believe will be many more deals in which are just too expensive for my taste. So keep in which in mind,” he said. “Even as I expect some terrific quarters buried in next week’s cacophony of earnings reports, call me wary.”

Click here for Cramer’s game plan next week