Cramer says the market won’t bottom until it sees another ‘crescendo’ moment

Jim Cramer on “Mad Money.”

Scott Mlyn | CNBC

CNBC’s Jim Cramer on Tuesday mentioned the inventory market won’t attain a bottom until sentiment finds a low level, akin to how shares rebounded from the historic coronavirus-fueled plunge final yr.

 “A year ago, we caught a weird bottom as the market experienced a changing of the guard, with the Covid winners taking over as the new leaders,” the “Mad Money” host mentioned.

Exactly one yr in the past, shares bought off at an unprecedented tempo, pulling the benchmark S&P 500 index down 35% from its peak in February in a matter of weeks.

One yr on, and the S&P 500 has bounced 82% from its lowest level on March 23, 2020. But sentiment has shifted, Cramer mentioned, with lots of the pandemic’s greatest gainers lagging the market yr to this point.

“Now we’re being dragged down by a similar leadership change, and while I know we’ll bottom eventually, it might take a while before we get a crescendo this time, too,” he mentioned.

The main averages all pulled again about 1% in Tuesday’s session.

The Nasdaq Composite is down 6.7% from its February highs as shares on the index pull again amid the reopening commerce. The Dow Jones Industrial Average is 2.4% off its March highs, whereas the S&P 500 is inside 2% of its all-time highs.

Cramer likened a market “crescendo” moment, when inventory promoting reaches a climax, to “a discordant synonym, and the instruments crash to a beautiful conclusion.”

He urged we’re headed for another, although much less extreme than final yr’s meltdown.

“That’s when a tsunami of selling wiped out the weak hands and the market bottomed, except unlike a symphony, many of us didn’t realize it was happening,” he mentioned. “Since last year, we’ve had a huge run, but now the market’s selling off again.”

Source hyperlink

What do you think?

Written by Business Boy


Leave a Reply

Your email address will not be published. Required fields are marked *



The future of the F-35 and the Air Force fighter fleet

Cramer says Costco, Amazon, Shopify and Walmart could trade higher on an ‘Easter rally’