Wait to buy as market reverses

CNBC’s Jim Cramer broke down Thursday’s market action and told investors to take a pause and figure out which stocks are worth buying on weakness.

“I think you should wait a day before making a buying decision,” he said, adding that despite the losses during the day, the market is not yet oversold. “But you have to figure out what you like tonight… and be ready for tomorrow because we will definitely see the negotiations develop.”

The indices fell after rising in the early hours of the session on Thursday. Nvidia stock The AI ​​darling entered longs on Wednesday night after reporting a strong quarter but finished down just over 3% on Thursday. Dow Jones Industrial Average with a loss of 0.84 percent S&P 500 down 1.56% and tech-heavy Nasdaq Composite It fell 2.16%.

Thursday’s session is a reminder that a company’s performance may not accurately reflect its stock price, Cramer said. He suggested there could be more “pain” in the future For any company that had a great quarter but still logged off.

It examined a number of factors that could have contributed to market losses, including declines in “most fundamental technology stocks,” such as basic semiconductor names that have been rallying for months but have pared losses in the past few days. Cramer noted that cryptocurrency stocks, especially those related to Bitcoin, have seen declines, suggesting that this could drag down the tech sector. He also noted that investors are worried about the economy and fear the Fed will not cut interest rates in December due to new data showing more jobs were created than expected in September.

Cramer advised keeping an eye on technology, saying there are some high-quality stocks whose shares are falling along with the sector.

“I want to see what’s going to hold tomorrow; stocks that are falling too fast, where expectations are too low and opportunities are too big,” Cramer said. he said. “These are the ones I am considering buying due to weakness, especially the high-end technologies that are currently being thrown out with the Bitcoin bath water.”

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Nvidia.