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Cramer finds the group of stocks where buyers flock after a sell-off

Where buyers flock after a sell-off
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Where buyers flock after a sell-off

Jim Cramer has found that the day after a market selloff, investors find comfort in a different kind of stock than they were buying on the day of the dip.

"[Day two] brings out an entirely new kind of buyer, not a guy hunting for yield ... but someone going on the offense looking for growth, growth that won't be impeded even if Washington's now clearly a millstone around the economy's neck," the "Mad Money" host said.

These buyers know that if the multi-trillion dollar bond market is signaling a slowdown, which it did on Wednesday, they need better stocks than industrials or financials or bond market equivalents to drive their gains, Cramer said. They need growth.

These investors, whether they are money managers or otherwise, do not take Washington's woes into consideration. When their stocks slide, they attribute it to collateral damage caused by weak-handed sellers scared of market collapse.

Watch the full segment here:

Cramer finds the group where buyers flock after a sell-off
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Cramer finds the group where buyers flock after a sell-off

"They don't care what reasons are causing the market to go down, they're simply making a judgment that whatever the heck it is, their companies aren't involved in it, won't be impacted by it," Cramer said.

What kinds of stocks do they buy or hold? The stocks of companies that will likely continue to grow without President Donald Trump's help — companies like Amazon, Apple, Netflix, Alphabet, and the semiconductor plays, the "Mad Money" host said.

"Of course, the growth guys don't just limit themselves to FANG and friends," Cramer added. "They seize on biotechs that have any sort of potential good news ahead, chiefly, today, Incyte, which you know we like, had some good data from an anti-cancer drug used in conjunction with Merck's Keytruda."

Barring any more Washington bombshells, Cramer believes this trend can continue. On day three, buyers of industrials and consumer goods stocks tend to emerge from the woodwork.

"Turns out there were plenty of buyers waiting for that political selloff to happen. We didn't know about them, and while they were contained to certain sectors, their day two buying after a sharply lower opening this morning told you that the growth hounds are back and they're more vociferous than ever," the "Mad Money" host said.

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