Cramer explains how to spot “subtle moments” like Friday’s session

CNBCs Jim Cramer Reviewing market action on Friday, he called the session a “subtle moment” in which stocks opened weak but averages rose to close. While he said this particular moment has come and gone, he listed ways investors can recognize it in the future and said these conditions could yield big gains.

“We used to call days like today “gentle moments”. These are the moments when bears overextend because they don’t know when to quit.” “We had one this morning.”

After a tough week on Wall Street – The Dow Jones Industrial Average down 1,100 points in a single session, marking its longest losing streak in nearly 50 years — the index jumped on friday. The 30-share Dow closed the week up 1.18% S&P 500 rose 1.09% and Nasdaq Composite It added 1.03%.

According to Cramer, these “tender moments” occur when the market is oversold. To discern market conditions, he said MarketEdge uses the S&P Oscillator, which shows when there is overbought or oversold. Cramer added that these “subtle moments” come when bearish investors show “overconfidence” and said he sees key stocks on Friday. Palantir, apple and Nvidia decrease at the beginning of the session for no apparent reason.

Investors should also watch for positive economic data when the market is oversold, Kramer continued. He suggested some of Friday’s bullish action was due to cooler numbers personal consumption expenditure price indexa the primary metric For the Federal Reserve. Finally, he said, the news against the catalyst for the recession should also be kept in mind. Investors balked after the Fed said it would cut interest rates less than expected next year. But a Fed official on Friday said he was encouraged by the PCE report and that rates could still be cut even though the central bank is cautious.

“It was really a tender moment this morning,” Kramer said. “They don’t come that often. But when they do, you have no choice but to shoot.”

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Refusal CNBC Investing Club Charitable Trust owns shares of Nvidia and Apple.