CNBCs Jim Cramer said Tuesday that he would advise investors to sell troubled stocks on every market jump, rather than trying to find stocks that could be bought in a market downturn.
“It’s really the opposite of buying dips,” said Cramer “Squawk on the street.” “I just think you’re selling poorer quality.”
Follow Wall Street worst day since the “Black Monday” market crash in 1987 on concerns about the economic impact of the corona virus, stocks swung wildly Tuesday before it goes higher.
The Dow Jones industry average On Monday, nearly 3,000 points, or around 13%, fell further into the bear market, dropping blue chips overall more than 30% from last month’s highs. A bear market is defined as a decline of at least 20% from the recent 52-week highs.
The roller coaster market moved up and down daily more than 1,000 Dow points last week and ended on Friday with the Dow’s largest rally since the 2008 financial crisis.
Cramer said on Tuesday he was skeptical of market advances. “Be careful when you come in and buy because it wasn’t a profit,” said the manager “Bad money” Host warned.
He started his day early Tuesday morning and called gyroscope in stock futures a “total joke.” Dow futures had a “limit” of 5% overnight, but also a rapid and sharp decline before they recovered.
He later said on “Squawk on the Street” before Wall Street’s market was opened to “focus on individual stocks,” not broad movements in the futures.