January 26, 2020 Real Estate Publication

Jim Cramer: We need more ‘negativity’ in the market before you can start buying again

The stock market has cooled off some after setting a series of record highs over the past two months, but it’s not a greenlight to start buying, CNBC’s Jim Cramer said Monday.

The Dow Jones Industrial Average pulled back more than 268 points, or almost 1%, and the S&P 500 fell more than 27 points, or 0.86%, during Monday’s trading session. The tech-heavy Nasdaq Composite also shed about 97 points, or 1.12%.

The indexes are all more than 1.2% off their highs that came before the Thanksgiving holiday, according to FactSet.

“We got hammered today,” Cramer said on “Mad Money,” “and it was much more of a hammering than any of the averages [appeared], because there’s not enough negativity. Once people start worrying again, stocks will come down to more reasonable levels and then you can pounce, but we’re not there yet.”

The technology sector, especially the cloud segment, felt the brunt of the negative Monday trading. The sell-off was triggered in part by institutional investors seeking to pocket their gains during the first trading days of a new month, Cramer noted. Stocks grouped in exchange-traded funds were further dragged by the activity as witnessed in the past, he said.

“We’ve seen it regularly since the software-as-a-service meltdown in April of 2014,” Cramer said. “You have to be careful because these kinds of moves can be brutal and, more important, they can be longer-lasting than the typical dip. In 2014 the whole group got hammered, led by Salesforce.com, which plunged from $67 to $48.”

Salesforce, the customer relationship management cloud platform, is slated to report third-quarter earnings Tuesday afternoon. While the stock is about $3 off its November high and the company has consistently topped Wall Street estimates, Cramer warned that investors should be cautious approaching this one because it “may be rolling over” with the cloud cohort.

He pointed out that the security had “four major declines since 2014” and that they were “multiday or even multiweek shellackings.”

“If you’re nimble enough to be a trader, then I actually would lighten up here and then buy it back at a lower level, but for most people that’s a bad piece of advice,” Cramer said. “I think you should stick with it through the pain because you never know if you’ll be fast enough to actually get back in [at] a better price.”

Disclosure: Cramer’s charitable trust owns shares of Salesforce.com

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? madcap@cnbc.com

Related Posts

Boeing’s 777X, the world’s largest twin-engine jet, completes maiden flight

January 25, 2020

January 25, 2020

A Boeing 777X airliner lifts off for its first flight at Paine Field on January 25, 2020 in Everett, Washington....

Xi orders centralized response to coronavirus: ‘It is our responsibility to prevent and control it’

January 25, 2020

January 25, 2020

Health care members make first aid to people as they cover their faces with sanitary masks after the first cases...

Boeing’s 777X, the world’s largest twin-engine jet, takes off in maiden flight

January 25, 2020

January 25, 2020

A Boeing branded 777X-9 sits at Boeing’s facility in Everett after it was announced that their 777X model will make...

Cadillac expects record global sales in 2020 – CT6 sedan officially dead

January 25, 2020

January 25, 2020

A Cadillac XT6 vehicle is seen at the La Fontaine Cadillac dealership in Highland, Michigan, September 18, 2019. Rebecca Cook...

Sports Money: NFL considering another Pro Bowl relocation; Seattle Mariners introduce $5 tickets

January 25, 2020

January 25, 2020

Russell Wilson #3 of the Seattle Seahawks at the 2019 NFL Pro Bowl Mark Brown | Getty Images Sport |...

Aerosmith’s drummer wanted to play at the Grammys — so he sued the band to do it

January 25, 2020

January 25, 2020

The classic rock band Aerosmith will be performing at this weekend’s Grammy Awards ceremony, but when they do, it will...

Hong Kong leader declares citywide virus emergency over coronavirus, first cases appear in Australia

January 25, 2020

January 25, 2020

Hong Kong leader Carrie Lam on Saturday declared a virus emergency in the city of 7.3 million, extending school cancellations...

Amid climate crisis, investors are starting to put their money towards a sustainable future

January 25, 2020

January 25, 2020

Mike Rasnic sits on the front porch of his home which is surrounded by floodwater on March 22, 2019 in...

Hong Kong leader declares citywide virus emergency over coronavirus, cancels all official visits to mainland China

January 25, 2020

January 25, 2020

A woman adjusts her mask to prevent an outbreak of a new coronavirus at the Hong Kong West Kowloon High...

Victim group blasts New Orleans Saints for helping Catholic Church with PR on clergy sex abuse

January 25, 2020

January 25, 2020

Lawyers say they want the New Orleans Saints and its spokesman to testify about that football team’s public relations assistance...

Porsche’s first Super Bowl ad since 1997 features car chase with its all-electric Taycan

January 25, 2020

January 25, 2020

Porsche will return to Super Bowl advertising for the first time since 1997 with a 60-second commercial that features the...

Everything Jim Cramer said about the stock market on ‘Mad Money,’ including big earnings week, L Brands’ predicament

January 25, 2020

January 25, 2020

CNBC’s Jim Cramer broke down the looming week of earnings reports with quarterly results coming from the likes of Facebook,...

Cramer’s week ahead earnings: ‘We’ve got a huge number of companies reporting next week’

January 25, 2020

January 25, 2020

As fears of the coronavirus grow, stock prices are likely to contract and investors should be prepared for buying opportunities,...

Cramer’s lightning round: American Express is working with millennials

January 24, 2020

January 24, 2020

American Express: “Oh, that quarter was beautiful. … and they did it with millennials. Millennials are really signing up, 50%...

Four analysts turned bullish on Victoria’s Secret-parent L Brands. Jim Cramer isn’t buying it, yet

January 24, 2020

January 24, 2020

CNBC’s Jim Cramer said Friday that he is perplexed by the bullish reviews L Brands, the holding company of Victoria’s...