Time to check in on Cramer’s theory that, after the market’s sell-off Wednesday, a third of that market would find a bottom today on Thursday.
Turns out he was right. As the techs and banks plunged lower, and the industrials fell at a slower pace, four other sectors found their footing: agriculture, health care, utilities and gold. They sold off in the morning with the rest of the market, as Cramer said the bottoming third would, but that was your chance to buy. Because by the end of the day they had rebounded.
The US Department of Agriculture’s crop report today showed commodity pressure and a short wheat supply, Cramer said, giving names like Potash and Deere the chance to bounce back. In recession-proof health care, Allergan and Medco Health Solutions were among the names that shot higher as the day wore on. (For a wider look at the drug-related names that closed in the green today, just check out the Amex Pharmaceutical Index. That, too, slipped after the opening bell but later recovered.)
Utilities Consolidated Edison , Duke Energy and Progress Energy found a bottom on Thursday as well, as investors sought out their dividend yields. And then finally, gold. This situation was a bit tougher for investors, as these stocks bottomed on Wednesday and never came down again on Thursday. That was certainly the pattern for Agnico-Eagle Mines and Cramer’s favored SPDR Gold Shares ETF .
“One third of the market, right on schedule, taken down along with all other stocks,” Cramer said, “rallying first, stake in the ground, available to all but the panickers and those who chose to frighten you out of stocks, when, alas, as they say, there's always a couple of bull markets somewhere.”
When this story was published, Cramer’s charitable trust owned Medco Health Solutions.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? email@example.com
Questions, comments, suggestions for the Mad Money website? firstname.lastname@example.org