CNBC’s Jim Cramer said Tuesday that he would advise investors to sell troubled stocks on any market bounces rather than trying to find stocks to buy on market declines.
“It’s really the opposite of buy the dips,” Cramer said “Squawk on the Street.” “I only think you sell lower quality.”
Following Wall Street’s worst day since the 1987 “Black Monday” market crash on concerns about the economic fallout from the coronavirus, stocks were swinging wildly Tuesday, before bouncing higher.
The Dow Jones Industrial Average plunged nearly 3,000 points, or roughly 13%, further into a bear market on Monday, sending blue chips down a total of more than 30% from last month’s highs. A bear market is defined as a decline of at least 20% from recent 52-week highs.
The roller-coaster market saw moves up and down of more than 1,000 Dow points every day last week, ending Friday with the Dow’s biggest rally since the 2008 financial crisis.
Cramer said Tuesday that he would be skeptical of market advances. “Be careful when you come in and buy up because it’s not been a winning situation,” the “Mad Money” host warned.
He started his day early Tuesday morning, calling gyrations in stock futures a “total joke.” Dow futures saw 5% “limit up” overnight but also a rapid and sharp decline before recovering.
The futures are a total joke. Don't even look at them. You can't have a bull market at 3:30 a.m. and have it end by 7 a.m.— Jim Cramer (@jimcramer) March 17, 2020
He later said on “Squawk on the Street” before the market’s Wall Street open to “focus on individual stocks” not broad moves in the futures.