Jim Cramer Sees Oversold Bounce as Investors Defy Terrorism and Push Stocks Higher

Cramer says despite a looming rate hike, investors are pushing stocks slightly higher on Monday after the big selloff on Friday.
By Bret Kenwell ,

"It's one thing not to sell, but I can't find a reason to buy a stock," said TheStreet's Jim Cramer on CNBC's "Squawk Box,"  

The tragic events unfolded in Paris on Friday pushed stocks lower but now the S&P 500 ETF (SPY) - Get Report is up 0.25% while the iShares MSCI France ETF (EWQ) - Get Report is down just 0.15%. 

Investors appear to be showing they won't be affected by terrorism by stepping in and buying stocks, said Cramer, the co-manager of the Action Alerts PLUS portfolio.


SPY data by YCharts

Monday is shaping up to be a combination of an oversold bounce and a "patriotic bid," he explained. 

Stocks are starting to be "very washed out" following the market's approximate 5% drop over the past few trading sessions, Cramer said, but some stocks really look "just horrible." 

"I don't see anything fundamentally to drive the market higher," he added.  

It seemed like investors were willing to continue selling until the Federal Reserve'smeeting in December clarifies whether there will be an interest rate hike now or in 2016. It's not clear if the events in Paris have derailed that initiative, Cramer said. Regardless, investors have been pricing the rate hike into the stock market. 

Investors are leery of a rate hike at this time because so many economic indicators suggests the economy is slowing, he added. Housing is one of the few positives, but a "dramatic decline" in imports and a likely peak in auto sales is a concern.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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