Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- There's always a better time to sell than into a market panic, Jim Cramer reminded "Mad Money" viewers Monday as he commented on the market's huge losses, the worst day in nearly three months.
Cramer said that even if your outlook on the markets is negative, never ever sell stocks in the middle of a big move to the downside. Why? Because selloffs like those seen last week are always overdone to the downside, said Cramer, and within a few days there will be a rally, a moment of strength, where investors can lighten their loads and sell at far better prices.
Cramer recalled learning this lesson the hard way back in his hedge fund days. He said the markets are largely controlled by traders, those who can get in and out of the market quickly. So even if there are "experts" on TV saying to sell everything, that advice likely doesn't apply to the individual investor with longer-term investment goals.So while this most recent weakness was caused by a misreading of the Federal Reserve minutes last week and further fueled by weakness in Europe, Cramer said it would be foolish to sell down here and raise cash. Use moments of strength like we saw this morning and sell into strength. Cramer said the goal is to always buy at a good price and sell at a better one, which is why selling when the market is down over 200 points is never the right move.
Living at the High EndThe rich are different from you and me, as F. Scott Fitzgerald wrote, and that's why companies that cater to the rich have stocks that are different, too. To that end, Cramer introduced his "Great Gatsby" index of luxury stocks. He said the list is not necessarily a list of stocks to go out and buy right now, but a way to measure the buying power of the high-end consumer. Among the list of retailers in Cramer's Gatsby index are Nordstrom (JWN), Ralph Lauren (RL), Michael Kors (KORS) and Lululemon Athletica (LULU).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV