Cramer explains how to spot ‘moments’ like Friday meetings | Real Time Headlines

CNBC Jim Cramer Reviewing Friday’s market action, calling the trading session a “great moment,” stocks opened softly but closed with average prices higher. While he said this particular moment has passed, he laid out ways investors can identify in the future, saying these conditions can generate huge gains.

“We used to call days like today the ‘wonderful moments.’ At these times, shorts would overdo it because they didn’t know when to exit,” he said. “We had one this morning.”

After a tough week on Wall Street — Dow Jones Industrial Average The index fell 1,100 points in a single day, setting its longest losing streak in nearly 50 years. bounce on Friday. The 30-stock Dow Jones closed the week up 1.18%, while S&P 500 Index up 1.09%, Nasdaq Index An increase of 1.03%.

Cramer said these “delicate moments” occur when the market is oversold. To identify market conditions, he said he uses MarketEdge’s S&P oscillator, which shows when there’s too much buying and selling. Cramer added that these “delicate moments” occur when bearish investors show “overconfidence,” saying Friday saw examples such as Palantir, apple and NVIDIA Dropped at the beginning of the session without a clear reason.

Cramer went on to say that when markets are oversold, investors should also pay attention to positive data about the economy. He said Friday’s upward action was partly attributable to cooler data from the United States. personal consumption expenditures price indexone key indicators For the Fed. Finally, he said news on catalysts to combat the downturn are also worth watching. Investors were hesitant after the Federal Reserve said it would cut interest rates less than expected next year. But on Friday, a Fed official said he was encouraged by the personal consumption expenditures report and said interest rates could still fall even as the central bank remains cautious.

“This morning was truly a wonderful moment,” Kramer said. “They don’t show up very often. But when they do, you have no choice but to pounce.”

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Disclaimer CNBC Investment Club Charitable Trust holds shares of Nvidia and Apple.