Cramer says anyone selling Big Tech stocks in premarket trading is ‘either a machine or an idiot’

Investing

Jim Cramer on CNBC’s Halftime Report.
Scott Mlyn | CNBC

CNBC’s Jim Cramer on Monday warned investors that selling stocks in thin trading during the early morning premarket hours is not a sound strategy.

“The selling that goes on between 4 a.m. and 4:30 a.m. in these Nasdaq names is frightening.” Cramer said on “Squawk on the Street.” “I keep thinking it’s a machine or an idiot, because who wants to sell without any real buyers there.”

Futures tied to the Nasdaq, which declined 2.6% last week, did not participate in Monday’s rebound that pushed many non-tech stocks higher before regular trading hours began on Wall Street at 9:30 a.m. ET. After the open, the Nasdaq rose, but lagged the strong recoveries in Dow Jones Industrial Average and S&P 500.

The Nasdaq, as of Friday, was about 6% away from its latest record close on Nov. 19. The Dow was roughly 5% away from its Nov. 8 record close. The S&P 500 was nearly 3.7% away from its Nov. 18 record close.

Cramer said many big tech stocks, which heavily populate the Nasdaq are in a bear market, defined as being off 20% or more from recent highs.

“To trade off of the tape is a real mistake here. It could reverse in a nanosecond,” Cramer said earlier on CNBC’s “Squawk Box,” pointing out that Nasdaq selling could turn into buying in this fickle market environment.

Cramer has never shied away from “pajama traders” as he calls them. In a couple of examples, the “Mad Money” host blasted them in 2017 and in 2019.

Products You May Like

Articles You May Like

New retirees may face surcharges for Medicare premiums. Here’s how to appeal paying extra if your income has dropped
Bond yields soar as markets weigh threat of a recession. What it means for your investments
Inflation and higher rates are a ‘dangerous mix’ for consumers already stretched thin, says chief financial analyst
One-time presidential pardon will not do much to alleviate student debt crisis, economists say. These changes may be a better solution
After the UK Super-Deduction: Assessing Proposals for the Reform of Capital Allowances

Leave a Reply

Your email address will not be published.