This Day On The Street
Continue to site
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

Jim Cramer: Spotting a Bottom Is No Easy Affair

Third, money flowed out of stocks and into bonds until two minutes after the bottom in the biotechs. Fourth, that whole process reversed at the bottom in the Nasdaq and the S&P. Fifth, everything accelerated to the upside when the Twitter news broke.

Or in other words, the whole thing was dreadfully artificial and entirely done by a combination of "break the sellers" margin call and short-selling and HTF pressure, no doubt encouraged by the rally in the bond proxy TLT. Once the sellers were broken, the process was free to reverse.

Now we have no idea if the sellers are done. They tend to come in when the market lifts, as soon as they think there's enough cushion. Again, that's typical of the way margin clerks work. They want to try letting the bids build before they slice through them. But once the process starts, it doesn't stop until 1 p.m.

My conclusion: If you think for even one second that this selloff has been motivated by earnings shortfalls, think again. That's not just because all the major stocks that have reported, save JPMorgan Chase (JPM - Get Report), have announced much-better-than-expected earnings.

Must Read: Kass Katch: Buy Ocwen Financial

It's all artifice.

That's why it is so darned hard to make a judgment as to whether the selling, at last, is complete.

At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, was long GOOG and JPM.

Editor's Note: This article was originally published at 8:02 a.m. EDT on Real Money on April 16.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment 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 serious 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

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
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums


Chart of I:DJI
DOW 17,890.83 +170.91 0.96%
S&P 500 2,094.40 +13.99 0.67%
NASDAQ 5,134.48 +25.8140 0.51%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs