Federal Reserve Chairman Janet Yellen will testify before Congress on Wednesday and Thursday for her semi-annual report on monetary policy.
TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" noted that Home Depot (HD) - Get Home Depot, Inc. (HD) Report stock is up slightly Tuesday after being "down, down, down."
Cramer said Home Depot is closely tied to Masco (MAS) - Get Masco Corporation (MAS) Report , a manufacturer of products for the home improvement and new home construction markets. Masco's stock is up nearly 5% on Tuesday after it reported strong fourth-quarter and full-year 2015 results.
That should give investors the green light to buy Home Depot, Cramer said, adding, "I think that's important because retail has been under pressure."
"People have been shooting and asking questions later. It's proven to be a wrong philosophy today," Cramer said.
"I'm crafting scenarios that just says people are afraid to be short ahead of Yellen tomorrow," and they will cover stocks like Humana (HUM) - Get Humana Inc. (HUM) Report , Tesla (TSLA) - Get Tesla Inc Report , Cummins (CMI) - Get Cummins Inc. Report and McDonalds (MCD) - Get McDonald's Corporation (MCD) Report , he said, as well as the FANG stocks -- Facebook (FB) - Get Facebook, Inc. Class A Report , Amazon (AMZN) - Get Amazon.com, Inc. Report , Netflix (NFLX) - Get Netflix, Inc. (NFLX) Report and Alphabet (GOOGL) - Get Alphabet Inc. Class A Report , the former Google.
"This is the traditional thing that happens in a bear market," Cramer said.
"People get all excited, and they think it's over," he said. "Don't get all excited."
At the time of publication, Cramer's Action Alerts PLUS had a position in FB and GOOGL.