Mad Money

Cramer: Hollywood secretly behind Wall Street weakness?

On Thursday investors were taking a close look at the declines in the stock market after both the S&P 500 and Dow Jones Industrial Average closed lower for the third consecutive day.

Some pundits believe the weakness stems from concerns about Fed tapering and others argue that new signs of weakness are starting to emerge overseas,.

Although Cramer concedes both issues are weighing on stocks, he doesn't think it's the dominant reason for the sell-off.

Nope. He believes the decline has everything to do with the folks in Tinseltown.

At issue -- all the great movies coming out, getting fantastic buzz and then making their way into nearby theaters

"Portfolio managers all over the country are leaving work and going to the movies," Cramer said. They want to see these fantastic films.

The money pro speaks from experience. Cramer's done it himself.

Beverly Hills, California
Stewart Cohen | Photolibrary | Getty Images

That is, back in 1993 when Cramer's hedge fund had performed extremely well, up more than twice the S&P, he quickly realized that one of the worst things he could do for investors was stay in the market this late in the year.

"At that point, I had everything to lose if I kept playing, so I left the table and went to the movies," Cramer explained.

First Cramer went to see "The Fugitive," but as he realized locking in gains was not only shrewd but prudent, "I went to the movies pretty much every day," he admitted.

Flash forward to 2013, and the "Mad Money' host thinks many money pros are having the same kind of year he had in 1993.

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The S&P 500 is up almost 25% year to date. And a slew of stocks are up a lot more. Cramer fave Celegene has gained more than 100%, Chipotle is about 75% higher for the year, while KeyCorp has gained more than 50% over the same time period.

It's only makes sense for money managers to lock in those kinds of gains.

That's why the market is down for a third consecutive day. "They locked in profits and went to the movies," Cramer insisted.

With big gains and so many great films in theaters, it's the smart thing to do.

Call Cramer: 1-800-743-CNBC

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