If you bought the weakness today, you should be pretty happy with your decision, Jim Cramer told his Mad Money viewers on Monday, after a wild ride on Wall Street that saw the market drop 1,100 points in time of lunch, just to close nearly 100 closing points.
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.
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.
Except for JPMorgan Chase (JPM) – Get a Report of JPMorgan Chase & Co and Netflix (NFLX) – Get Netflix, Inc, the profits have not been horrible. Now we haven’t seen one, but two, acquisition bids for Kohl’s (KSS) – Get Kohl’s Corporation Report. Home builders are also on the rise after weeks of decline. Even cloud stocks, such as Adobe Systems (ADBE) – Get Adobe Inc. Report and ServiceNow (NOW) – Get a ServiceNow, Inc. Report, was able to rally 3.9% and 3.5% respectively. None of that indicates a recession.
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.
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