Jim Cramer explains how to trade Thursday’s tech stock sell-off

After buyers fled Big Tech on Thursday, CNBC’s Jim Cramer advised investors to take advantage of the rotation, but be aware that it may not last long.

“I say enjoy the rotation. This broadens the scope of things historically and tomorrow you’ll have another opportunity to make money with today’s winner,” he said. “But if rates stop falling, and stop falling significantly, don’t hang around too long.”

Investors retreated from this year’s best-performing companies, including Nvidia and Yuan. The move was driven by lower consumer prices, which fueled Wall Street’s hopes of a rate cut from the Fed. Housing and industrial stocks, e.g. The Home Depot and caterpillar Since they will benefit from lower interest rates, they see a boost.

Cramer said these rotations “tend to last about three days in nature.” He said bond yields would have to continue to fall for these stocks to continue rising, and he didn’t think there was “enough data to continue to push the bond market higher.” He also noted that many of the companies honored Thursday have not fundamentally changed.

He said Big Tech buyers will be back soon, but warned investors not to buy large-cap stocks now because they need time to rebound.

“It’s going to take time to recover from this hit, and in the meantime, their stocks are likely to go lower,” he said. “So if you want to buy, I would suggest waiting a few more days. Let’s see if the banks report good data tomorrow, How will they react?”