Cramer: People are just losing it
Jim Cramer | [email protected]
Or is the plan to sell stuff that's been up a lot because it's a good thing to take profits?
Or is the plan to just go along with the futures selling because you never know what the Fed is going to do.
Or is there just no plan at all?
I think it's the latter. We have a lot of people who have come in during the last few months because the market can do no wrong. And they are freaking out. Right now.
I see it on Twitter. There are people literally begging for advice about what to do because they are in totally over their heads and know nothing about what they own.
Now, I don't think there was anything really different yesterday from other days. We were just higher than we were before.
But the lack of depth of these people who are experiencing this downturn--measured by the people who follow me on Twitter--is shocking. There are people who are freaking out if a stock's down 80 cents. There are people who want to slit their throats because a stocks down 3 percent.
So it looks as if we're going to get a little cleansing and shake-out because there's no way these people can make money. Many are just PowerBall players who hit a couple of times and then think that they can hit all of the time.
Because so many people have missed this rally, the tendency will be, as has been the case every time in 2013, to immediately conclude this is the Big One. Let those people short the market and accentuate the decline.
Give it some room. Most stocks are up so much that you'll just ruin your basis if you buy here.
Yet there's plenty of stocks that are pulling back hard that I like, stocks like Joy Global and Vale, because they haven't moved yet. There's a stock like EOG, which is getting crushed, or Wells Fargo, which is giving you still one more chance to get in.
Plenty to look at and start bidding for, but let's get some of these summer soldiers--who have never experienced any pain--to bolt before putting any serious capital at risk here because they create the best bargains in their own panic.
Disclosures: Cramer's charitable trust is long JOY, VALE, and WFC.