Cramer Urges Selling Parabolic Stocks as Arm and Corning Slide More Than 44%
Updated
Updated · CNBC · Jul 28
Cramer Urges Selling Parabolic Stocks as Arm and Corning Slide More Than 44%
3 articles · Updated · CNBC · Jul 28
Summary
Jim Cramer told investors to take profits when stocks turn parabolic, arguing gains are not real until shares are sold and that sharp momentum rallies often reverse fast.
More than 50% drops in Sandisk and Corning, plus Arm’s 44% fall from its June peak, underpinned his warning that AI and data-center winners have pulled back hard in recent weeks.
The CNBC Investing Club said it acted on that approach by exiting Arm on July 8 and trimming Corning several times in late June rather than trying to call the exact top.
Corning still beat second-quarter expectations, yet the stock fell 12% Tuesday, reinforcing Cramer’s view that broken parabolic trades can keep sliding even when fundamentals remain intact.