Sellers and fearfuls are considering an enormous amount of negatives, including the possibility of an all-out recession. But Cramer noted that things are rarely as bad as they are. Bottoms can happen in the blink of an eye, and that’s exactly what happened today. The sellers just tire themselves out and have nothing left to sell. We haven’t seen one of these crescendo bottoms since 2020, but Cramer’s prediction was correct last week that the bottom is near, and now, he says, it’s finally here.
Smart investors make a plan and stick to their plan, buying the right stocks at the right level. At the peak of the sale on Monday, down stocks outperformed stocks by nine to one. That, according to Cramer, is the right level.
Except JPMorgan Chase (JPM) – Get JPMorgan Chase & Co. Report at Netflix (NFLX) – Get Netflix, Inc. Report, earnings have not been terrible. Now, not one, but two, we have seen acquisition bids for Kohl’s (KSS) – Get Kohl’s Corporate Report. Home builders are also on the rise after weeks of decline. Even cloud stocks, such as Adobe Systems (ADBE) – Get Adobe Inc. Report at ServiceNow (NOW) – Get ServiceNow, Inc. Report, was able to rally 3.9% and 3.5% respectively. None of that indicates a recession.
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