Wait for the price to break next week while the market is overbought

CNBC’s Jim Cramer on Friday presented his game plan for the week ahead, encouraging investors to put their feet up while the market is overbought.

“I think it would be beneficial for you to wait for the price to break before you pull the trigger,” Cramer said. “There are enough quality stocks out there that could still drop significantly in a benign environment, like health insurers this week — more on that later — or semiconductors last week, so I’m sure you’ll get your chance to buy something good. In weakness, why don’t you wait?”

While the market is closed on Mondays for the June holiday, Cramer will be watching Raytheon perform at the Paris Air Show. He expects positive results due to the high demand for global travel post-Covid.

FedEx is scheduled to report earnings on Tuesday, and Kramer said he believes the company has “one of the most exciting positions in the entire market,” due to new CEO Raj Subramaniam and the increase in e-commerce over the past few months.

Wednesday will bring an analyst meeting from Dollar Tree, which Cramer said just reported one of the worst quarters of the year. He believes a return could be possible, but not without a concrete plan of action. Elsewhere, home builder KB Home will report on the Wednesday after closing, and Cramer expects the result to be similar to the positive results recently reported by its peer, Lennar.

On Thursday, Cramer will focus on Olive Garden Darden’s parent company’s earnings report, as well as investor meetings from software companies Samsara and MongoDB. He expects the three names to tell positive stories, especially Darden, because he believes people keep spending on eating out.

Cramer believes CarMax’s earnings report on Friday will show used car prices are falling, which he said is a good sign for the company.

Kramer’s bottom line?

“When I say the market gives you opportunities to get in, I’m reminded of how wild moves are constantly happening, and that’s when you act,” he said. “The pattern is simple: an emotional horror show followed by a rational buy, which remains a very good setup indeed.”