Cramer was unfazed by Monday’s 400-point drop in the Dow, he said during Stop Trading!.
The declines are a natural snapback after last week’s “aggressive markups” by money managers hoping to save face after a horrible November. But Cramer doesn’t expect to retest the lows of a few weeks ago. The government’s investment in Citigroup coupled with the green light to buy Fannie and Freddie paper, in turn lowering mortgage rates, shows the markets are in better position than before the Thanksgiving holiday.