The shares are being traded in the reopening of optimism, but the risks remain

The stock market is returning to optimism, causing tech stocks to fall and cyclical stocks to rise in Tuesday’s session, said CNBC’s Jim Cramer.

Although the main averages fell at the close, Cramer said the stock was defined by a decline in consistent carriers and a sporadic rise in both bullish and bearish stocks.

“It’s all about optimism, folks. Investors are voting with their feet,” said the host of “Mad Money”. “They are leaving these stories of secular growth, the shares of companies that are doing well regardless of whether the economy is hot or cold. Instead, they are finding their way into the shares of companies that only earn a lot of money when business is booming. “

The comments were made after the general market retreated from gains made on Monday, after a strong liquidation last week. The Dow Jones Industrial Average fell 144 points on Tuesday to 31,391.52, down 0.46%. The S&P 500 declined 0.81% to 3,870.29. The high-tech Nasdaq Composite fell 1.7% to 13,358.79.

S&P sector indices also traded lower during the session, with the exception of materials. The discretionary parts of technology and consumption in the market had the most difficult display, with both indexes joining Nasdaq with a drop of more than 1%.

Cramer said that market activity reflects investors who are betting on the chances that citizens will soon be able to drop their Covid-19 protective masks and that states will soon be able to abandon restrictions on coronavirus and return the economy to normal, thanks to the progress of the country in front of vaccines. Still, a tug of war remains between those who are optimistic and those who are cautious, he added.

The governors of Texas and Mississippi announced plans on Tuesday to remove masking rules and all restrictions on commercial activities in their states.

“They are betting that we will soon be able to rip off our masks and get back to normal, and that is the crux of this market right now,” said Cramer. “At the moment, people who think that our long national nightmares are coming to an end. They are the ones who are winning.”

He warned, however, that the timing of the market is still vulnerable to risks. Cramer said the country could reopen very quickly and that variants of the virus, like the strain first discovered in South Africa, could lead to another peak if the country let its guard down.

While President Joe Biden expects to sign a $ 1.9 trillion spending stimulus package that is coming to Congress later this month, any obstacle to passing the bill in the Senate could have an impact on the market.

“There is still a lot that can go wrong,” said Cramer.