Wall Street is in denial about the market

Saying that Wall Street denies the power of the market, Jim Cramer argued that investors ignored the falling oil prices and, in his words, the “presidential move”.

“When in doubt in this market, check the direction of oil. Ignore those who mock every word that comes out of the president’s mouth,” Cramer said on “Mad Money” Wednesday, noting that President Donald Trump has often been able to get the market out of a jam.

According to Cramer, the street chose to ignore Wednesday’s pullback and focus on the doom and gloom of rising oil prices.

“Everyone was acting as if oil was still going up,” Cramer said.

Oil fell on Wednesday as investors remained optimistic that the United States and Iran could agree to a ceasefire. The withdrawal followed reports that Iran had received a 15-point proposal from the United States to end the war. On Wednesday, Iranian state media said they would reject the offer and instead publish a five-point plan requiring the country to control the Strait of Hormuz.

While the international benchmark Brent Crude oil decreased by 2.17% to $102.22 per barrel, West Texas Intermediate fell by 2.2% to $90.32 per barrel following the developments.

“I’m seeing denial everywhere, and it’s really undermining everyone’s performance,” Cramer said, noting that stocks rose Wednesday.

Dow Jones Industrial Average It increased by 300 points. S&P 500 and Nasdaq Composite also closed the session with a slight increase.

“Whoever was selling at that moment has to stop because the presidential bid has spoken,” Cramer said. “The president likes to keep the market afloat and knows the words people want to hear.”

Cramer said investors need to stop ignoring the facts about what’s happening in both oil and the broader market.

“Stop denying the drink,” Cramer said. “You’ll get sick.”