Smart investors make a plan and stick to it, says Jim Cramer. Those who were prepared for Monday’s weakness should be happy.
If you bought into today’s weakness, you’ve gotta be pretty happy with your decision, Jim Cramer told his Mad Money viewers Monday, after a wild ride on Wall Street that saw the market down 1,100 points at lunchtime, only to close up nearly 100 points by the close.
Bottoms can happen in the blink of an eye, and that’s precisely what happened today. The sellers simply exhausted themselves and had nothing left to sell. We haven’t seen one of these crescendo bottoms since 2020, but Cramer correctly predicted last week that the bottom was close at hand, and today, he says, it finally came.
The sellers and fear mongers were factoring in a tremendous amount of negatives, including the possibility of an all-out recession. But Cramer noted that things are rarely as bad as they appear.
Other than JPMorgan Chase (JPM) – Get JPMorgan Chase & Co. Report and Netflix (NFLX) – Get Netflix, Inc. Report, earnings haven’t been horrible. Today we saw not one, but two, takeover bids for Kohl’s (KSS) – Get Kohl’s Corporation Report. The home builders were also surging after weeks of declines. Even the cloud stocks, like Adobe Systems (ADBE) – Get Adobe Inc. Report and ServiceNow (NOW) – Get ServiceNow, Inc. Report, were able to rally 3.9% and 3.5% respectively. None of that spells recession.
Smart investors make a plan and stick to their plan, buying the right stocks at the right levels. At the peak of Monday’s selling, down stocks outnumbered up stocks by nine to one. That, Cramer concluded, was the right level.
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