Home>> Business>>Last week’s market worries are no longer in play on Wall Street, Jim Cramer says
Business

Last week’s market worries are no longer in play on Wall Street, Jim Cramer says

Wall Street got its groove back Monday after a rough sell-off in stocks last week brought buyers to the market, CNBC’s Jim Cramer said.

“Tomorrow, traders will go for the winners, not the losers, because it looks like we forgot everything that took us down on Friday, otherwise we wouldn’t be up so strongly today,” Cramer said. “And by forgot, I mean the artificial forces that drove us down have disappeared. They’re no longer in play.”

Last week, the Dow Jones Industrial Average suffered its worst week of trading this year, a move driven by artificial reasons, he said on “Mad Money.”

Cramer pinned last week’s decline largely on a number of events he referred to as “sell programs,” which includes a rebalancing in the S&P and St. Louis Fed President James Bullard’s hawkish statement on Friday about interest rates.

Despite this, the fundamentals remain intact. The only thing that has changed is the selling price of stocks, Cramer said. A decline in bond yields also weighed on the stock market, though yields rebounded Monday, he added.

“Rather than trying to judge the overall action, I think the right move is to buy great stocks like the reopening plays, the travel companies, the favorite oils — Chevron and Pioneer — or the companies that have just reported incredible numbers, like Adobe,” Cramer said.

Chevron and Pioneer Natural Resources shares tumbled more than 4% last week. Chevron rallied almost 3%, while Pioneer recovered most of its losses in one day. Cramer also recommended Gap, United Parcel and American Express. Each of those stocks put up notable gains in the session.

“Sometimes stocks move and it’s all about the mechanics of the market, not the fundamentals. All we can do is stop drawing … conclusions from the action.”

Disclosure: Cramer’s charitable trust owns shares of United Parcel.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer’s world? Hit him up!
Mad Money TwitterJim Cramer TwitterFacebookInstagram

Questions, comments, suggestions for the “Mad Money” website? [email protected]

donate

Please disable Adblock!

Leave a Reply

Your email address will not be published.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

%d bloggers like this: