How should investors react when the macro, micro, and the mechanics start breaking down?
Jim Cramer broke down how he and his team over at Action Alerts PLUS responded when the markets started to take a turn for the worst.
During his June Action Alerts PLUS June conference call, Cramer explained what he and his team did to protect themselves.
"We are not chartists at heart but we knew from the excellent chartists who write for Real Money that things were as bad as they come. You had to work so hard to find an unbroken chart other than the utilities. Charts matter," said Cramer. "Most portfolio managers I know are closet chartists. They were pointed down. When you get too much supply and terrible breakdowns you get liquidations and we started, at the end of the month to see those, too."
"So when you see the macro, micro, and mechanics about to break down, you take action. That's exactly what we did and when the selling was over we were ready to buy and we had the cash to do so," he continued.Jim Cramer Reveals When to Sell a Stock