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Stock Market Today With Jim Cramer: Don't Buy the Dip in Crypto

Jim Cramer discusses the latest stock market news, including how to trade Tesla, the selloff in the cryptocurrency market, and the selling in the overall market Wednesday.

Stocks dropped Wednesday on worries about higher inflation and as cryptocurrencies prices plunged. 

TheStreet's Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about how to trade Tesla, the selloff in the cryptocurrency market and the selling in the overall market Wednesday.

Tesla: Buy Or Sell?

Cathie Wood’s Ark Investment Management bought the dip in Tesla  (TSLA) - Get Tesla Inc Report and added more than 47,000 shares in the electric-car maker in the last trading session, according to data released late Tuesday, Bloomberg News reported.

Shares of Tesla continued to slide Wednesday afternoon.

Cramer recalled that if investors buy Tesla "a couple of days before Memorial Day the record is incredible." 

"It was a Larry Williams idea, but you gotta get there. We're not there yet for the trade to work, but we're not too far either. I think you need to find a reason to buy it [Tesla]. It's down a great deal. The problem is that cohort [tech stocks] is just a disaster story," he said.

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Crypto Selloff

Bitcoin prices slumped to a 3 1/2 month low Wednesday, while cryptocurrency peers such as Ethereum and Dogecoin traded heavily in the red. The moves followed a renewed crackdown on virtual-currencies markets in China and a broader pullback in risk markets in the U.S. 

Cramer suggested that investors not buy the dip in cryptocurrencies amid a major selloff. He compared investing in crypto to a horse race and said investors must take profits at the right time and be disciplined about it.

Wednesday's Market

Cramer said he's watching the selloff in the markets today. "You get 10 to one negative to positive and you have to do some buying," he said.

None of the stocks mentioned in this article are key holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer adds or removes stocks from his portfolio? Learn more now.