Look out the window of any office building on Wall Street and you'll see bulls licking their wounds while struggling to find their footing. Stocks suffered their biggest one-day decline since July on Thursday, with all 10 primary S&P sectors lower on the day and most down more than 1 percent.
Not only has the S&P 500 (.SPX) dropped for four of the past five sessions, it closed below its 50-day moving average for the first time since Aug. 15.
Cramer knows how upsetting these developments may be. However he's seen similar circumstances many times before and over the years he's developed a handful of strategies that he uses to navigate just these kinds of situations.
One of those methods involves taking the temperature of investor sentiment. And with the Dow Jones industrial average (.DJI) dropping by triple digits and stocks negative month to date, on Thursday sentiment was negative to scary.
Although your knee-jerk reaction may be to pare back, Cramer says that's a mistake. It may seem counterintuitive, but Cramer has found the best thing investors can do right now is resist the urge to sell. Find out why: