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Cramer: Sell Now and Risk Seller’s Remorse

There's nothing wrong with locking in profits, but in this stock market Jim Cramer worries that selling right now may be the wrong trade.

"Somewhere along the line, the psychology shifted," he said. "Somewhere along the line it stopped feeling good to sell."

Not only does it not feel good to sell but Cramer believes that seller's remorse may drive the tape even higher.

"It's the fear of not having enough stock," he said. "It's the fear of looking at a stock that has just zoomed after you've sold it."

And that, Cramer explained that is among a money manager's worst fears.

"It's also the fear of not having something else to buy that's any good," he added.

And it's a fear that Cramer can relate to.

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"Take McDonald's," he said.

"How smart did I feel buying Mickey D's for my charitable trust right into a Goldman Sachs downgrade at $85? This is one of the highest quality stocks around, the best Dow performer in 2011, that peaked at $101 and change at the beginning of 2012 before its precipitous descent on a couple of missed numbers," he said.

Sure enough McDonald's climbed and Cramer rang the register in the 90's.

Betsie Van der Meer | Stone | Getty Images

"Have you seen McDonald's now," he asked. "The Golden Arches have galloped to $98 and change. I have Egg McMuffin all over my face!"

Cramer sees the same kind of trend emerging in other stocks ranging from Boeing to Wells Fargo – that is sellers regret selling.

And when that happens, it creates a floor in the market.

"We haven't really seen seller's remorse since the 90's. It's sure here now, though, and it has infected the mindset of all investors who are so sick of seeing the stocks they dumped go higher. I suspect they just don't feel like selling anything anymore," he said.

"I have no doubt that seller's remorse won't last," Cramer added. "But, it's a new development," in the market, and an important one at that.


Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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