This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

'RealMoney' Radio Recap: The Waiting Game

It's hard to confuse Jim Cramer when it comes to Wall Street, but he told his "RealMoney" radio show listeners on Friday that recent stock market action has him stumped, because people are buying stocks that are up huge.

"Every morning, the market opens nicely and comes crashing down," he said, and that means someone is taking a beating.

There are markets when you literally have to buy the opening every day because the early trading is always bad, he said, using the 1990s as an example. That's when the Japanese were constantly dumping U.S. stocks as the country struggled with what Cramer called "the greatest bear market of all time."

Europe was also weak at the time because of Russia, he said, so every day it made sense to put money to work at the open.

Moreover, he said, there are openings that are mixed and investors pick and choose.

But this stock market "does not reward you for buying stocks up in the morning," Cramer said.

"You've got to fade this market, which means you've got to bet against it (in the morning)," he said.

In addition to accepting opening prices, investors are also using market orders instead of limit orders.

So, what do you do if you do fall in love with a stock? Curb that instinct to buy at the open, Cramer said. He said he would wait until 10 a.m. ET before taking any action, and then he would only buy one-quarter of the order he wants.

You want 200 shares of Motorola (MOT)? Cramer said he'd buy 50 to preserve his capital.

Almost every day, Cramer said, he sees opportunities to buy stocks at a discount because sloppy sellers come in and unload companies they should hold on to.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs