Jim Cramer Says Retail Investors Should Wait to Buy Stocks

Stocks climbed early Thursday, but Jim Cramer, portfolio manager of Action Alerts PLUS, remains cautious still. 'My experiences are when you have a really big up day, the second day is when we start thinking, okay, what shouldn't have come up, and we get a little selectivity.' On Wednesday, the Dow soared more than 600 points, ending a six-day losing streak, with big gains in stocks like Google (GOOG), Facebook (FB), Amazon (AMZN) and Netflix (NFLX). Cramer said if you haven't bought anything yet, you are going to get another chance. 'You have to buy down in this market,' said Cramer. 'A lot of retail investors say, oh I can buy now because it's clear, but we got all the way back to even, and when we get back to even a lot of the institutional investors say now I'm going to take some profits.' Cramer also pointed out that institutional investors may want flat positions ahead of the big weekend.