Buy an Upgrade After a Down Day

If you catch an upgrade on a down day, that’s a great way to make some mad money, Cramer says.

Normally, an upgraded stock goes higher instantly. But that won’t happen when there’s a sell-off in the market.

Instead, the stock will wait for things to turn up. The goal for the smart investor is to buy just before this happens. When the sell-off simmers down, that’s when you make your move, Cramer says.

This is why it’s important to stay disciplined when other investors are abandoning ship. The cool head gets the best merchandise.

Bottom Line: One more method to Cramer’s madness – buying stocks that have been upgraded on days when the market is down hard.

Questions? Comments? madcap@cnbc.com

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  • Jim Cramer

    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."

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