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NEW YORK (TheStreet) -- Where did all of the sellers from yesterday go? That was the question Jim Cramer posited to his Mad Money viewers Wednesday after the markets mounted a strong reversal from yesterday's big selloff.
Apparently, yesterday's sellers were of the "hit and run" variety, Cramer concluded -- investors who buy stocks they know nothing about only to sell, sell, sell at the first whiff of trouble.
There were still plenty of reasons the market could've continued lower today, including Workday (WDAY), which reported a disappointing quarter that resulted from actual competition. Surprisingly, Workday's weakness did not spill over in other high multiple stocks, as it typically would.
Then there's the sad saga of Michael Kors (KORS), the former Wall Street darling that forecast double-digit declines in same store sales, news that sent shares lower by 24%. Here again, only Fossil (FOSL) followed suit, with other high end retailers like Tiffany (TIF) ending up 10.5%.
Finally, there was the continued collapse of Shake Shack (SHAK), down 14%, as investors continue to realize this stock's stratospheric prices may have only resulted from the massive short squeeze Cramer outlined yesterday (LINK).
But despite all of these shortfalls, the markets surged higher, prompting Cramer to remind viewers that they must use selloffs like yesterday to get the prices they want for the stocks they need. Don't buy into the panic, only buy stocks you understand and are willing to hold onto for the long term.