GO
Loading...

Cramer navigates market crosscurrents

Tuesday, 3 Dec 2013 | 6:02 PM ET
Market is truly confused: Cramer
Tuesday, 3 Dec 2013 | 6:00 PM ET
Mad Money host Jim Cramer says market confusion is almost always negative for stocks. Cramer also suspects there will be more markdowns.

(Click for video linked to a searchable transcript of this Mad Money segment)

You may have noticed the markets are getting a little choppy. Good thing Jim Cramer knows how to navigate these waters.

"The market truly is confused right now," he said. That is, some investors are convinced the stock market's fate lies squarely with the Fed Reserve and they worry about Friday's jobs number and the resulting aftermath.

Others worry that valuations in the market are troubling. They question whether the global economy is really strong enough to generate earnings that warrant stock prices at their current levels.

Still others aren't sure what to make of political developments such as the latest budget negotiations in Washington.

"That kind of confusion is almost always negative for the market," Cramer said.

DNY59 | E+ | Getty Images

However, a pullback isn't necessarily negative for you. Quite the contrary.

Cramer believes it can be an opportunity if you're strategic.

What you need to do is "Look for individual stocks with individual stories that are improving," Cramer explained. If market weakness triggers a decline in these select names, you're getting them at a discount.

As an example, Cramer cited Apple.

"Today was an obvious opportunity. We heard good news in spades. Apple may have a huge deal with China Mobile on the horizon. Apple's always lacked social media initiatives to bolster their mobile efforts, but they just bought a company last night that allows them to monitor what's buzzing in social media, and it could be a prelude to a much larger initiative. And today UBS upgraded Apple stock saying that the holiday season could be huge."

All told, those are reasons to hit the buy button, not sell.

And although Apple did rally on Tuesday Cramer believes it would have rallied more if not for broad negativity.

"Apple could have been up 25 points, instead of the 15 points it advanced," Cramer said. "I think the darned thing is still a bargain."

Cramer believes similar opportunities are plentiful in the market.

"Take the auto companies," Cramer added. "I think these are good times for the autos." Yet broad market concerns pulled the stocks lower.

Cramer thinks the same is true for Johnson and Johnson and JM Smucker. "Both would have been substantially higher on Street upgrades if it weren't for this sell-off."

Now, make no mistake. That's not to say any or all of these stocks can't go lower. They can.

-------------------------------------------------------------------------
Read More from Mad Money with Jim Cramer
Cramer: 6 recent IPOs with upside
Two dangerous stocks into year's end
4 stocks bears have all wrong
-------------------------------------------------------------------------

Cramer is simply saying in this kind of market, he believes it's strategic to identify single stocks with defined bullish catalysts.

Then, when you find one, identify an entry point that you believe is attractive and if a sell-off pushes shares down to that price, Cramer believes the smart move is to buy the weakness.

"When you see opportunities such as these I'd pounce," said Cramer. "Wait too long and I think someone else snaps them up."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

  Price   Change %Change
AAPL
---
JNJ
---
SJM
---

Featured

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.