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Jim Cramer: Here's How Investors Should React to Market Highs

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We've been getting a lot of news around market highs. 

It's safe to say that the end of the week was certainly a turnaround from the start of the week.

We had the S&P 500 hit 3,000 this Wednesday, July 10.

And, then the Dow followed suit. For the first time ever in trading, the Dow hit 27,000 Thursday, July 11.

Friday, July 12 saw the indices making even more record moves. 

Curious about how retail investors should be handling the market? Here's what TheStreet's founder and Action Alerts PLUS portfolio manager Jim Cramer has to say:

"I do say that this is a move, based on the fact that there's been no pin action to disappointment. You know, that's different. There's been disappointment, but no pin action. So you take a company like Illinois Tool Works, that has so much auto, and you had bad auto and it doesn't go down. If you're in those, I think you have to accept the fact that there's going to be volatility. You'll lose some money. But what I would do was always look at the stocks that are down 5% to 8% from their high. That's my rule, five to eight. And if you've been waiting like I have with Merck, you might be right," said Cramer.

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