Prominent Market commentator Jim Cramer asked investors not being swayed by market bears and using their missteps to strengthen their own portfolios.
“Your false sale creates opportunities for you to buy the dips. You need [the] Belief that the sellers are wrong and you are right. You have to believe in your view, not the view that the tape gives you — that the bears give you,” Cramer said according to to a CNBC report.
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Major Wall Street indices ended in the green on Wednesday after the Federal Reserve slowed the pace of its rate hike to an expected 25 basis points as chair Jerome Powell recognized inflation has started to decrease. The SPDR S&P 500 ETF Trust SPY closed up 1.06% on Wednesday, while the Invesco QQQ Trust Series 1 QQQ gained 2.14%.
Trading Approach: Cramer pointed out that the sale would have been the right way to go when inflation was still soaring The Fed aggressively hiked ratesa bearish trading approach no longer works.
“It doesn’t make sense once the Fed says the rate hikes are working and we’re pretty far into the tightening cycle, even if they’re still seeing some wage inflation,” he said.
Cramer also said that the market is currently in a bull mode and that the bears were really hit on Wednesday.
“Those who continue to fight the bull like they did today think they are in a bear market and they are being trampled on. Today was a real trampler, and the bears — they still don’t know what hit them,” he said, according to the report.
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