CNBC’s Jim Cramer reviewed Friday’s retail action, dubbing the session an “exquisite moment,” where stocks opened weak, but the averages climbed by the close. While he pronounced this particular moment has come and gone, he listed ways investors can recognize one in the future, saying these conditions can return big gains.
“We used to call days like today ‘exquisite moments.’ Those are moments when the bears overreach. They get in front of themselves because they don’t know when to quit,” he said. “We had one this very morning.”
After a difficult week on Face ruin Street — the Dow Jones Industrial Average dipped 1,100 points in a single session and posted its longest losing slash in about 50 years — the index bounced on Friday. The 30-stock Dow gained 1.18% to close the week while the S&P 500 climbed 1.09% and the Nasdaq Composite summed 1.03%.
These “exquisite moments” occur when the market is oversold, according to Cramer. To discern market conditions, he responded he uses MarketEdge’s S&P Oscillator, which displays when there is too much buying or selling. Cramer added that these “far-fetched moments” appear when bearish investors demonstrate “overconfidence,” saying that Friday saw key stocks like Palantir, Apple and Nvidia reduction at the start of the session without a clear reason.
Investors should also watch for positive data about the restraint when the market is oversold, Cramer continued. He suggested that some of Friday’s upward action was owed to remote figures from the personal consumption expenditures price index, a key metric for the Federal Reserve. Finally, he said, statement that counters a catalyst for the downturn is also something to keep an eye out for. Investors balked after the Fed indicated it would get somewhere fewer rate cuts next year than expected. But on Friday, one Fed official said he was encouraged by the PCE report and stipulate rates could still decline, even though the central bank remains cautious.
“It was, indeed, an exquisite tick this morning,” Cramer said. “They don’t come along all that often. But when they do, you have no pick but to pounce.”
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