Jim Cramer says the stock market is getting closer to forming a bottom
CNBC’s Jim Cramer said Thursday he believes the stock market is getting closer to reaching an investable bottom after a challenging start to the new year.
The “Mad Money” host’s comments mark a shift in outlook compared to two weeks ago, when Cramer contended it was too early to buy aggressively based on a 10-item checklist he uses to determine when stocks are bottoming.
“Considering that we’ve now got many boxes checked, it means that something we didn’t have two weeks ago, we now have,” Cramer said. However, he said the market’s steep turnaround late in Thursday’s session “inspired a lot of terror” and signals the market “still has some work to do” before reaching a trough.
For example, Cramer said he’s now seeing a “sickening level of negativity” on Wall Street, pointing to the American Association of Individual Investors’ sentiment survey that shows nearly 47% of members hold a bearish outlook. That’s up from roughly 38% a week ago.
“This is an astounding level of negativity,” said Cramer, who added that he also is observing analyst downgrades on a range of companies from AMD to Ford Motor. Two weeks ago, he said analysts had yet to throw in the towel.
Another sign a bottom is forming is companies that report strong earnings are showing an ability to swim against the bearish tide, Cramer said. Procter & Gamble serves as one example, he said.
To be sure, Cramer said the picture is too opaque to check some boxes on his list, including whether cash on the sidelines is ready to come in and buy the dip. Even so, he stressed he’s “feeling a little more confident” about stocks than he was two weeks earlier. $Netflix(NFLX.US$ $Alphabet-A(GOOGL.US$ $AMC Entertainment(AMC.US$ $Tesla(TSLA.US$ $Nasdaq Composite Index(.IXIC.US$ $Invesco QQQ Trust(QQQ.US$
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Expendabiggles : Yea, maybe in another month of BS. This is far from over
Soulforger : Lol, the worst is yet to come and he believes market is reaching bottom
Dramericanjesus : If Cramer believes it, we got another 30 percent or so to go.
GoldenPiggy : You are better off trying your luck in casino than listen to Cramer.
MonkeyGee : He also said DIDI is a buy of the century
102466046 : at early January, that clown still ask to buy Netflix
robbygrowth : I have mixed feelings. on one way, I think we have a ways to go. large caps are historically still quite over valued. on the other hand, when everyone thinks the market is going one direction, it tends to signal a reversal. usually takes a couple months though. think we got more pain
efficentupup OP MonkeyGee : What do you think
efficentupup OP 102466046 : lol.
MonkeyGee robbygrowth : don't over think it
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