Cramer’s take is one of the market’s more interesting gossip items, as it underscores the fact that the bullish fights are far from finished. Everyone should bear in mind that today’s rally can turn into a trapdoor tomorrow. According to Jim Cramer, Wall Street’s tug of war is not over for tech giants Nvidia and Apple, and the coming act may be different. On Friday, CNBC’s Jim Cramer rang alarm bells for short sellers betting against two of the most high-profile stocks in the market, Nvidia and Apple, signaling a tactical retreat before another possible strike.
Cramer, the host of Mad Money, believes these shorts are lying in wait, letting the prices rebound, only to hit again when they see fit. Cramer wrote on X,
“Nvidia and Apple are so heavily shorted that I don’t think the shorts are going to play their hands first. They are going to let them rally and hit them again. That’s the only way they can get out of this mess because they can cover after they drive them down a bit.”
Short-Squeeze Battle
Cramer reflects on the idea of selling high, buying low, and profit from the difference. Rallying sharply, as they have over the past few sessions, Nvidia and Apple leave their short sellers at risk of getting “short squeezed,” where they are forced to buy back stocks at rising prices.
He believes that the smart move is to wait. Let the rally do its thing, set a good entry point and then preferably push the prices lower to cover the positions. It’s an act of strategic procrastination that may buy a little time ahead, but it also means higher prospects for volatility in two of tech’s biggest pioneers on the market.
Magnificent 7 & Tariff Exemption
That said, part of this rebound depends on the wider recovery in giant tech stocks, the Magnificent 7, which had seen the red mark on a year-to-date basis. As momentum started once again after President Donald Trump halted reciprocal tariffs on consumer electronics, it provided a relief to such companies as Apple and Nvidia.
Trump in a notably significant move, temporarily exempted the tariffs on smartphones, semiconductors and computers, thereby reversing part of the hefty 145% tariff on Chinese goods, which set off a rally in the premarket session on Friday. The S&P 500 was up 1.18% to $540.26, while Invesco rose by 1.41% to $460.81, as per Benzinga Pro data.
Despite the favorable measures, uncertainty lurks. Commerce Secretary Howard Lutnick warned that the exemption is, for the most part, temporary. While Trump indicated that news about revealing tariff rate on imported semiconductors would follow in the coming week. The combination of tariff threats, temporary exemptions, and policy pivots adds further to this tightrope walk, as the risk for volatility has remained sky-high. Cramer is watching more than the earnings or the charts, it’s seeing who doesn’t flinch first in this psychological face-off. Whether it is Apple, Nvidia, or the short sellers, it is not about the numbers, rather about the nerves.
