Jim Cramer: Profit-Taking Behind Market Dip as Traders Eye Nvidia, Apple, Broadcom

Jim Cramer: Profit-Taking Behind Market Dip as Traders Eye Nvidia, Apple, Broadcom.

CNBC’s Jim Cramer has weighed in on the pre-market decline, attributing the downward momentum to “profit-takers” who seized the dip amid the ongoing selloff.

What Happened? In a recent update on X, the host of "Mad Money" highlighted the significant choice confronting short sellers as they assess their forthcoming strategies regarding major technology companies such as Nvidia Corp., Broadcom Inc., and Apple Inc. Cramer's insights indicate that following a notable increase in these closely monitored stocks on Wednesday, investors who entered the market earlier are now inclined to secure their gains, which is likely resulting in some selling pressure prior to the start of the trading day.

The tweet also explores the strategic considerations of short sellers, who are currently at a pivotal moment as they contemplate their next moves regarding Nvidia, AVGO, and AAPL. Cramer noted that these investors are "trying to figure whether to operate on Nvidia, AVGO, AAPL all over again."

Short sellers evaluate several factors before deciding to short a company's stock, including: - An analysis of the fundamental reasons behind their negative outlook on these companies and whether those reasons remain valid. - The presence of new catalysts that could trigger a potential decline in stock prices. - Whether the stocks have shown sufficient underlying strength, making further shorting a potentially risky proposition.

Cramer pointed out the challenges that short sellers face, suggesting that it may be "too difficult" to initiate or increase short positions, especially after President Donald Trump announced a 90-day pause on tariffs on Wednesday. While the decline observed on Thursday could simply be a result of profit-taking, short sellers must remain cautious of a potential 'short squeeze' if these stocks continue to rise following the tariff pause. Cramer expressed confidence that clarity on this situation would soon become apparent, stating, "We will know by mid-morning."

So now the profit-takers come in and the shorts are trying to figure whether to operate on Nvidia, AVGO, AAPL all over https://t.co/1AHRVjG6xe.--or it is too difficult and it is time to cover and move on,, We will know by mid morning... Watch the club ten minute broadcast at…

— Jim Cramer (@jimcramer) April 10, 2025

The High-Stakes Takeaway: In 2025, technology giants have faced the most significant challenges, and Trump's choice to impose tariffs on U.S. trading partners has intensified the downturn in these stocks. Below is an overview of the year-to-date performance of the Magnificent 7 stocks, including the recovery observed yesterday.

Prices correct at time of publication.

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