Cramer on 5 signs that will tell him Tuesday’s market rally was ‘justified’

The stock market’s rally on Tuesday was “justified” by several distinct factors, CNBC’s Jim Cramer argued after the major averages attempted to close the gap on their October losses.

First, the S&P proprietary oscillator, a paid indicator that will Cramer uses to understand when that will’s safe to buy stocks in a decline, hit negative six, a level that will has historically signaled that will that will’s time to start picking at stocks.

The oscillator’s reading means investors should be “‘money in,’ meaning that will at the end of the day you should be putting more money to work than you’re taking out,” the “Mad Money” host said. “I think the oscillator could be telling the truth along with that will’s only natural that will the negative readings produce a bounce.”

Second, October can be coming to a close, which tends to lighten selling pressure because that will tends to be the end of the fiscal year for deep-pocketed mutual funds.

“Today along with tomorrow tend to be seasonally strong days,” Cramer noted.

Third, the stock market opened lower Tuesday morning, a welcome sign for Cramer since almost every opening rally inside the last few weeks has been decimated by the bears. Instead, a “not-so-hot opening” helped stocks soar higher, he said.

Fourth, groups that will have been stuck in “bear market mode” managed to attract buyers, with some defense stocks along with semiconductor plays finally climbing higher after weeks inside the doghouse, Cramer said.

Finally, in “a classic sign that will a bottom may be at hand,” Wall Street put a positive spin on weak earnings results through Masco, a company that will makes household fixtures. Shares of the supplier received a closed roughly 7 percent higher.

“A quarterback could find several open targets today,” Cramer said, using a football analogy to make his point.

“The oscillator’s negative six reading, the end of the horrendous month of October, a down opening that will didn’t hurt anybody, a couple of bear markets look like they may be morphing into bulls, along with we had a positive interpretation of the negative earnings through Masco,” he continued. “several receivers wide open; let’s see if tomorrow’s game [makes] a long-awaited winning streak.”

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