GO
Loading...

Cramer: 10% Correction Possible

A 10 percent correction is "entirely possible," Cramer said Wednesday, as stocks fell sharplyon worries the Greece debt crisis may escalate and concerns over other headwinds facing the economy.

After all, the "Mad Money" host noted the market is already down 7 percent. Cramer doesn't think another 3 percent to the downside is out of the realm of possibility. He stopped short of calling it a bear market, though.

"I think we're holding in," Cramer said. "It's a bad market, but we could be substantially down from Monday and we're not."

Stocks tumbled amid worries over increased turmoil on the Greek debt situation, but Cramer argued it's not a "Greek tragedy."

Cramer also pointed out that Friday is options expiration, or the date on which an options or futures contract is no longer valid. The expiration date tends to create volatility. So if the market continues to fall during this period, he thinks that could be a bad sign. If the market goes up, however, then maybe the sell-off is options-related.

Meanwhile,oil prices slipped to near $98 a barrel. But is that a bad thing, Cramer asked. After all, lower oil prices leads to lower gas prices, which helps the consumer. So if oil prices are falling because there is an increase in supply, he thinks that's a good thing. On the other hand, if oil prices are falling because of weak demand, that would be bad. But Cramer doesn't think that's the case because copper demand is strong.

Elsewhere in the market, Pandora made its market debut on Wednesday. It opened at $20 a share. The Internet radio said it currently has 90 million subscribers, but Cramer isn't impressed. He said the company could have twice as much and it wouldn't matter to him. To Cramer, the most important thing is whether a company is making money and at this time, Pandora isn't turning a profit. So he would flip the stock.

—CNBC.com with wires

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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

Symbol
Price
 
Change
%Change
P
---

Featured

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • 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.