Mad Money

Cramer: Watch for these sudden market moves

Cramer: Watch for these sudden market moves
VIDEO4:5804:58
Cramer: Watch for these sudden market moves

In the old days, when Jim Cramer was on Wall Street, it would take weeks for investors to unwind decisions they made and change their minds. These days, buyers and sellers are making decisions at lightning speed.

When the tragedy in Brussels occurred Tuesday, stocks collapsed immediately. Then, slowly, segments of the market that had nothing to do with the terror attacks began to rejuvenate, led by health care. Then tech came back, followed by domestic utilities and international growth stocks.

By the end of Tuesday's session, Nasdaq finished in the green and only the travel and leisure stocks remained down.

"That is remarkable. In the old days, I could see those sell decisions undone maybe a week later as the coast had cleared. Now, it just takes hours," the "Mad Money" host said.





The move was breathtaking in its speed and re-calibration.
Jim Cramer
People place flowers for the victims of the Brussels attacks, in front of the Belgian embassy in Moscow, Russia, March 22, 2016.
Maxim Zmeyev | Reuters

Cramer wondered if perhaps there is a computer algorithm that can calculate the average decline after an exogenous event in particular sectors, and know when it is prime to pounce.

"The move was breathtaking in its speed and recalibration," Cramer added.

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Cramer is always on the hunt for ways to play the emerging dollar store trend, so he was excited when Five Below reported on Wednesday. The company has been expanding rapidly and has improving gross margins and a well-run distribution system.

However, the stock was up more than 20 percent going into the quarter, so when Five Below didn't overperform in same-store sales, the stock was initially crushed at the open.

Suddenly, Five Below's stock pivoted higher and managed to close up more than 6 percent Wednesday. Back in the day, it would have taken a couple of upgrades and four days for that to happen.

"These re-evaluations on the fly are something new to watch for because you may take the bait of the first down move rather than waiting around a few days for a turn," Cramer said.

Cramer interpreted that as the market telling investors to stick around, because the truth will come out faster than ever — a brand new trend for 2016.

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