Wait for a price break next week while the market’s overbought, Jim Cramer says

CNBC’s Jim Cramer on Friday provided his game plan for the week ahead, encouraging investors to cool their heels while the market is so overbought.

“I think it’s going to be worth your while to wait for a price break before you pull the trigger,” Cramer said. “There are enough high-quality stocks that can still go down big in a benign environment, like the health insurers this week — more on that later — or the semiconductors last week, so I’m sure you’ll get your chance to buy something good on weakness, so why not wait?”

While the market is closed on Monday for the Juneteenth holiday, Cramer will be looking at Raytheon‘s performance at the Paris Air Show. He’s expecting positive results because of the high demand for global travel post-Covid.

FedEx is set to report earnings on Tuesday, and Cramer said he thinks the company has “one of the most exciting situations in the entire market,” owing to new CEO Raj Subramaniam and its 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 comeback could be possible, but not without a tangible plan of action. Elsewhere, homebuilder KB Home will be reporting on Wednesday after the close, and Cramer expects the outcome to be similar to the positive results reported recently by its peer, Lennar.

On Thursday, Cramer will be focused on Olive Garden parent Darden‘s earnings report, as well as investor meetings from software companies Samsara and MongoDB. He expects all three names to tell positive stories, especially Darden, as he thinks people are continuing to spend on dining out.

Cramer thinks CarMax‘s Friday earnings report will show that used car prices are coming down, which he said is a good sign for the company.

Cramer’s bottom line?

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