- CNBC’s Jim Cramer said Friday that only one of six items on his market stability checklist happened this week.
- This was the worst week of 2023 for all major market averages.
CNBC’s Jim Cramer said Friday that his six-point checklist for stabilizing the market wasn’t even close to completion this week.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite recorded their worst week in 2023 yet. And according to Cramer, the low point has not yet been reached.
Interest rates went in the wrong direction this week, rising rather than falling. Expensive stocks rose instead of falling. Meanwhile, recession-proof stocks didn’t get the revival they needed.
One item on the checklist came through: banks performed better. If banks remain stable, Cramer said they will be valuable by leading the market while coexisting with higher rates.
On the fifth item, Wall Street overgeneralized the retail market, Cramer said, instead of separating out the winners. Shares of Walmart felt the pain of broader retail sales, even as the company reported a strong holiday quarter.
Cramer advised investors to keep an eye on retail earnings next week and see if Wall Street differentiates between winners and losers.
Finally, Cramer said he won’t declare the sell-off over until the market is oversold. He has not seen that result in the S&P oscillator, which has been historically accurate in calling market bottoms.
Cramer will elaborate on his checklist at Saturday’s CNBC Investing Club meeting in New York.
And until those boxes are checked, Cramer said, “You have to keep your head down. Now is not the time to go heroically over the top and try to buy something.”
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