CNBC Investing Club

What Cramer is watching Friday — looking for early signs of a market bottom

Traders work on the floor of the New York Stock Exchange (NYSE) on May 12, 2022 in New York City. The Dow Jones Industrial Average fell in morning trading as investors continue to worry about inflation and other global issues. 
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What I am looking at June 17, 2022

  • The bottoming process requires genuine throwing in the towel. The best example would be the homebuilders. Take Toll Brothers (TOL). This morning Wells Fargo downgrades TOL to hold from a buy, even as it sells at 4 times earnings and is down 44% — the average decline of this kind of stock right before the END of a bear market. Just when you think the negativity is built in to a stock, a bull throws in the towel. There are now NO buy recommendations among the twenty-some odd firms that follow Toll Brothers. Just neutrals and sells. No one left to downgrade …