CNBC’s Jim Cramer of Mad Money sounded a bit more hopeful than he has been in a few weeks. With the Dow shedding only 6 points on Tuesday after a series of three digit declines, some investors may wonder “is this the bottom?” (or for those not familiar with Wall Street’s bottom talk, “Is it Over?”) Well, this might be an attractive bottom, but just for a one-off. Not the kind of bottom investors are looking for long-term. But any port in a storm. Cramer thinks Tuesday’s action might signal a bottom for traders (the one day stand sharks) but not for investors (virtuous searchers for meaningful, lasting intimacy with a stock, like Warren Buffett).
On Monday, Cramer made a checklist of what needs to happen for the market to actually bottom in a meaningful way. Some of these were satisfied on Tuesday. Semiconductors revived with strong data from Skyworks (SWKS) and Intel (INTC). The market finally seems to have learned to love cheap oil, so industrials lifted their heads up. There was actually no new bad Ebola news except the churning of the same hysterical predictions, so airlines lifted just a tad. He thinks Angela Merkel of Germany might have to abandon her austerity policy, but that might not happen overnight.
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Still, these partial cross-offs on the list of stock horrors are not enough to justify general bullishness. Great stocks can be bought at bargains, but Cramer recommends caution.