There were expectations all over the place on Tuesday, and Jim Cramer knows that when that happens there will be some very exaggerated moves on the market.
"Today these moves were all over the map, and the volatility is insane because the expectations are proving to be so wildly off base," the "Mad Money" host said.
Expectations were ridiculously high for Twitter, and Cramer has told investors for a long time to not get too excited about the stock. Jack Dorsey just started as new CEO, and the company will take time to turn around. Yet, expectations remained high, and the stock got pounded for light guidance and weak user growth.
Bizarre expectations were also set for the largest company in the world, Apple. It reported some very good earningsT Tuesday evening. There were many rumors that there would be a slowdown in iPhones because German semiconductor supplier Dialog Semi indicated that business had become weak.
As a result, many investors presumed that Apple had been doing badly.