Cramer says anyone selling Big Tech stocks in premarket trading is ‘either a machine or an idiot’
Jim Cramer on CNBC’s Halftime Report.
Scott Mlyn | CNBC
CNBC’s Jim Cramer on Monday warned investors that selling stocks in thin trading during the early morning premarket hours is not a sound strategy.
“The selling that goes on between 4 a.m. and 4:30 a.m. in these Nasdaq names is frightening.” Cramer said on “Squawk on the Street.” “I keep thinking it’s a machine or an idiot, because who wants to sell without any real buyers there.”
Futures tied to the Nasdaq, which declined 2.6% last week, did not participate in Monday’s rebound that pushed many non-tech stocks higher before regular trading hours began on Wall Street at 9:30 a.m. ET. After the open, the Nasdaq rose, but lagged the strong recoveries in Dow Jones Industrial Average and S&P 500.
The Nasdaq, as of Friday, was about 6% away from its latest record close on Nov. 19. The Dow was roughly 5% away from its Nov. 8 record close. The S&P 500 was nearly 3.7% away from its Nov. 18 record close.
Cramer said many big tech stocks, which heavily populate the Nasdaq are in a bear market, defined as being off 20% or more from recent highs.
“To trade off of the tape is a real mistake here. It could reverse in a nanosecond,” Cramer said earlier on CNBC’s “Squawk Box,” pointing out that Nasdaq selling could turn into buying in this fickle market environment.
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