CNBC’s Jim Cramer reviewed Friday’s market action and called it a “great moment” after the stock market opened the day weak but ended with a higher average. While he said this particular moment has passed, he laid out ways investors can identify in the future, saying these conditions can generate huge gains.
“We used to call days like today the ‘wonderful moments.’ At these times, shorts would overdo it because they didn’t know when to exit,” he said. “We had one this morning.”
After a tough week on Wall Street — Dow Jones Industrial Average The index fell 1,100 points in a single day, its longest losing streak in about 50 years, before rebounding on Friday. The Dow 30 ended the week up 1.18%, while S&P 500 Index up 1.09%, Nasdaq Index An increase of 1.03%.
Cramer said these “delicate moments” occur when the market is oversold. To identify market conditions, he said he uses MarketEdge’s S&P oscillator, which shows when there is too much buying and selling. Cramer added that these “delicate moments” occur when bearish investors show “overconfidence,” saying Friday saw examples such as Palantir, apple and NVIDIA Dropped at the beginning of the session without a clear reason.
Cramer went on to say that when markets are oversold, investors should also pay attention to positive data about the economy. He said Friday’s upward action was partly attributable to cooler data from the United States. personal consumption expenditures price indexa key indicator for the Federal Reserve. Finally, he said news on catalysts to combat the downturn are also worth watching. Investors are hesitant after the Federal Reserve said it would cut interest rates next year less than expected. But on Friday, a Fed official said he was encouraged by the personal consumption expenditures report and said interest rates could still fall even as the central bank remains cautious.
“This morning was truly a wonderful moment,” Kramer said. “They don’t show up very often. But when they do, you have no choice but to pounce.”
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