Jim Cramer says by his calculations, we aren’t quite at the market bottom, but his checklist shows we’re closer than ever. Here’s why.
After a brutal meltdown in the stock market today, are we finally nearing a bottom? Jim Cramer told his Mad Money viewers Thursday that the only way to know for sure is to consult his “market bottom checklist, which he last revisited on Jan. 6. Back then, Cramer saw only two items on his checklist that signaled a bottom was getting closer.
After Thursday’s selloff, is there is a large amount of negativity amongst investors? Yes. Are the big institutional investors getting clobbered? You bet. Is sidelined money ready to be invested once the bottom is at hand? Yep.
All told, Cramer’s list had seven of 10 items now checked. He said according to most indicators, the markets aren’t quite in oversold territory and there are still many analysts that haven’t started downgrading their favorite stocks. Cramer was also not yet convinced there are enough good earnings this quarter to offset the declines.
But with many more boxes checked than we had just two weeks ago, the bottom is looking a lot closer. We still have more work to do, but investors should keep their shopping lists at the ready.
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