Jim Cramer suspects that those who sold stocks in April were just doing it to get ahead of those who will sell in May. But could they have seller's remorse now that the averages closed in the green on Friday?
"Now, I don't think we're necessarily out of the selling woods, though, because we're in a real conundrum here," the "Mad Money" host added.
Investors are perplexed right now, thanks to the weakening dollar and rising price of crude. They had previously favored stocks of companies within the United States because they weren't hurt by a strong dollar. They also banked on companies that benefited from the low price of gasoline.
But then, when the dollar strengthened, these stocks lost their luster, and now investors are wary of the same stocks they loved just last month. And while they are no longer in love with domestic stocks, the international companies aren't doing so well right now.
Put all of this together, and we have a treacherous marketplace. One where Cramer sees a major sea change happening. One where no stocks are in favor right now: domestic, international, everything! That's what caused a major selloff.
With this in mind, Cramer shared his game plan of stocks and events that he will be watching for next week.
Monday: Berkshire Hathaway annual meeting, Denny's
Berkshire: Monday morning brings the Berkshire Hathaway annual meeting. Lately, Cramer has seen the same old pattern again. Investors get gloomy and sell, and then they hear the Oracle of Omaha speak, and it brings their spirits back up.
Cramer expects Monday to be no different. In fact, he thinks Warren Buffett will be filled with optimism when he speaks.
Wednesday: Battleground day—Tesla, Whole Foods
Whole Foods: The stock has acted terribly lately, which tends to foreshadow weak numbers. However, Cramer thinks this one has been punished quite a bit. He recommended buying half ahead of the quarter and then half later if the stock sells off.