For the second week in a row the Dow sold off the day after a major – and much-needed – rate cut. The index later climbed about 398 points to finish well into positive territory, but Cramer said we shouldn’t have declined at all.
He blamed skittish traders who were late to realize just how dire the situation was before Bernanke dropped interest rates 50 basis points. The move was a clear acknowledgement of the troubles the markets were in, and these latecomers panicked and immediately took profits. Too bad the market’s turning up now.
“When they finally catch on in six months,” Cramer said, “we’ll sell them the very stocks we’re buying now for a hefty profit.”
J.C. Penney CEO Mike Ullman expects American Living to be a billion-dollar concept, and Cramer said he believes chief executive. So with opportunities like that in the market, negativity equals stupidity, he said, adding that these two companies are the market’s new leaders.
“I say buy them both,” Cramer said.
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