After a steep market selloff Monday, stocks opened higher Tuesday. The Dow was up 49.68 points, the Nasdaq Composite was up 11.34 points, S&P 500 was up 8.64 points and Jeff Bezos was up in space.
Jim Cramer and Action Alerts PLUS senior analyst Jeff Marks discussed how market speculation is impacting stocks, the bitcoin selloff, Jeff Bezos’ trip to space, IBM (IBM) – Get Report, Nvidia (NVDA) – Get Report and much more.
Watch the full interview with TheStreet Live in the video below:
Too Much Speculation and Too Little Stability?
Cramer told Mad Money viewers Monday that yesterday’s selloff was a case of “too much speculation, too little stability and a raging COVID variant,” Scott Rutt wrote in his Mad Money Recap.
But did Monday’s plunge mark an end of the euphoria or is more selling heading Wall Street’s way?
On Real Money Monday, Cramer wrote that the market won’t find a bottom until speculators are completely blown out. “Once the speculators are blown out and the stocks that are down huge start rallying along with those that that have already started, then we can find a trade-able bottom. We are close, but the speculators endure. These tortured souls can leave gracefully now, or get margined out when things really turn against them,” Cramer wrote.
For a clear barometer of speculation, Cramer said to look no further than the “meme-a-day” stocks – small-cap names that are pushed higher by the Reddit cohort one day, only to lose all gains the following day.
So what’s the game plan, is it time to cut and run until the speculation runs its course?
Cramer said that while the temptation is certainly there, now is actually the time to give your shopping list a look and do some buying… as long as you’re doing your homework.
“I can’t say I love the market, but if you don’t nibble on something, you’re foolish…You have to find something you like,” Cramer told TheStreet Live Monday.
Speculation, however, isn’t limited to stocks.
“Have you noticed how low bitcoin is and how it seems to be hanging by a thread? Once again a sign of speculative excess. I like bitcoin, but I want to see it wrenched out before I get in again,” Cramer wrote.
As of early Tuesday, Bitcoin traded at $29,630, more than halved from its all-time high in May.
Hear what Jim Cramer is only telling members of his Action Alerts PLUS investing club in Tuesday’s Daily Rundown.