“How many times have I told you not to get too negative?” Jim Cramer asked Thursday on CNBC’s “Mad Money.” It’s time to finally pay attention, he said, because just when you least expect it, you get a major move that will allow you to sell all you want, but at much higher prices — just as investors got today.
Especially today, when the markets soared skyward thanks to stronger macro reports and after ECB President Mario Draghi pledged to do whatever it takesto save the euro, Cramer urged investors to find the silver lining among stocks. By the closing bell, the Dow Jones roared up 211 points, or 1.67 percent, at 12,887 — well on its way to the 13,000 mark — the Nasdaq jumped 1.37 percent to 2,893 and the S&P 500 rose 22 points, or 1.65 percent, to finish at 1,360.
Despite the barrage of negative talk from analysts and TV commentators and Cramer’s own personal tweets about how “the lunatics in Europe refuse to do anything that can be considered even mildly positive," Cramer said this reversal of fortune provides the perfect exit point for investors hoping to cash in on some gains.
Even though Greece may run out of money on Aug. 20 and default on its last bailout, and even though Spanish bonds continue to trade as though they’re going to default — yields on the Spanish five-year bond are at a dishearteningly high 7.5 percent — there is still money to be made. Even in spite of all the talk Cramer’s been hearing about Banco Santander’s “horrible quarter” and Siemens’ earnings disappointments.
So, why is Cramer staying positive? Because he said that in the short time it took him to order a cup of coffee early this morning, the markets rebounded heavily and the Dow was up 200 points — all because “Mario Draghi, the toothless European version of Ben Bernanke, is going all Malcolm X and saying he will preserve the euro and these big sovereign bond markets by any means necessary.”