The Dow Jones industrials and S&P 500 closed lower on Tuesday, pulling back from record levels. However, the Nasdaq cruised higher to another record level. There was another pullback in the market, specifically in crude oil, which had hit its highest level since 2014 and quickly retreated. Also look out for the Federal Reserve’s June meeting minutes to release on Wednesday to give an idea of what monetary policy we should expect going forward. All this makes for a stock picker’s market, and who better to pick these stocks than CNBC’s Jim Cramer.
Cramer has been a force in the market for years, dishing out advice and analysis to savvy investors. He makes no bones about how he encounters the market with well-founded technical and fundamental analysis at a level to which many a trader and investor aspire.
It is no secret that Cramer has not just been a fount of breaking news surrounding everyone’s favorite stocks and companies, but he also actively engages and encourages more people to get their money to work for them via smart investing. With the recent surge in meme stocks and interest in cryptocurrencies, Cramer has shifted and grown with the times. He even has investment strategies on the cutting edge.
Cramer has maintained a popular show on CNBC for years now. Many people watch “Mad Money” to make sense of the daily market moves. He also runs the popular finance website TheStreet.com. Furthermore, you can see him make cameos on other shows over the course of the trading day on CNBC. When not on the air, you can find him on Twitter, dishing out even more knowledge.
24/7 Wall St. has compiled and distilled some of Cramer’s top picks and analysis here:
With the pullback that happened on Tuesday, Cramer noted that when markets sell off like this, it provides an opportunity to buy in more, and he highlighted a few stocks that investors should consider.
Cramer noted the first type of stock that investors should buy during a sell-off are those that are rallying while the rest of the market declines. Jimmy Chill pointed to stocks like Amazon Inc. (NASDAQ: AMZN), which posted nearly a 5% gain on the day, and Apple Inc. (NASDAQ: AAPL), which had a 1.5% gain.
The second type of stock to keep an eye out for is those that are on your personal shopping list, specifically ones that might have taken a loss. Companies like Devon Energy Corp. (NYSE: DVN) haven’t seen too many down days while oil demand is relatively strong, but this makes a loss of 5% on the day a solid entry opportunity.
The last type of stock Cramer noted was the great high-quality companies that are only declining because the broader markets are taking a dip. He pointed to American Express Co. (NYSE: AXP) as the company is doing great, but it is only pulling lower because it is tied to so many exchange-traded funds.
For the final word, Cramer said that investors shouldn’t be arrogant when buying stocks on down days because you’ll never know how far these shares will fall. This puts an emphasis on being patient and buying in stages if the markets should fall further.
For the Lightning Round, Cramer led off with RadNet Inc. (NASDAQ: RDNT): “It’s a great situation. They should consolidate every one of these. I think that they have a lot going for them, and I like it. I’m glad you brought it to our viewers’ attention. It is a good situation.”
Bionano Genomics Inc. (NASDAQ: BNGO): Cramer aligned himself with ARK Invest on this one, “Here, I agree with Cathie Wood. She has a lot of genomic plays, and one or two of them are going to make up for all the rest and, I don’t know if that’s the one that’s going to be it, but I certainly think it’s a good spec.”
Modine Manufacturing Co. (NYSE: MOD): “That’s a sweet one. You’ve got a sweet industrial that is undiscovered by most people, and your homework has brought you in the right place.”
C3AI Inc. (NYSE: AI): Cramer said, “It’s just an interesting business, it’s an AI business and frankly I’d rather be in Nvidia when it comes to AI because Jensen Huang is AI.”