CNBC’s Jim Cramer on Wednesday stated the stock market is filled with pessimism, creating an opportune second for traders.
“Fairly or unfairly, this is a great moment for the stock market,” the “Mad Money” host stated. “The promised land is right there. We’ve still got to get through the worst phase of the pandemic, but then we’ll be vaccinated and, hopefully, you’ll never have to hear about Covid-19 again.”
The feedback come after a combined day of buying and selling on Wall Street the place the Dow Jones Industrial Average slid whereas the S&P 500 and Nasdaq Composite moved greater. The three main indexes have been effectively off their session lows.
Cramer stated the buying and selling day was extra unstable than the closing appeared. Stocks traded decrease on a worse-than-expected drop in retail gross sales final month, the Federal Reserve’s feedback on the state of the economic system and ongoing coronavirus pandemic worries, he defined.
A late-in-the-day announcement that lawmakers are nearing a $900 billion coronavirus reduction measure helped shares rebound, he added. The invoice will doubtlessly embrace $600-per-person direct cost stimulus checks for Americans.
The Dow ultimately closed at 30,154.54, down 0.15%. The S&P 500 inched up 0.18% to three,701.17 and the Nasdaq Composite climbed 0.50% to 12,658.19.
Cramer stated the lingering detrimental sentiment is intriguing for traders.
“I’m actually thrilled by all the negativity because it means stocks can still go higher. As long as we have doubters, we can rally,” he stated. “The market goes up when bears turn into bulls, so think of the negativity that we saw all morning as the fuel. When everyone’s positive, well that’s when you have to worry.”
“As I see it, the bears — once again — the bears [were] wrong,” the host stated. “Sure, this is an ugly moment, but we’re about to cross the Jordan River after spending ages lost in the wilderness, and there’s a land of milk and honey on the other side.”
Disclosure: Cramer’s charitable belief owns shares of Boeing, Facebook, Amazon, Apple and Alphabet.