“Sometimes the market comes together and makes perfect sense. Then there are days like today when I can’t accept how stupid bullshit this market can be. ”; –
This is CNBC’s Crazy Money host Jim Cramer, who shakes the head of “obscure” investors who ignore a number of warning signs to buy stocks during bullish trading on Tuesday.
“Never underestimate the power of enthusiastic buyers who don’t know what they’re doing,” he said after the Dow Jones Industrial Average (DJIA) ended the session with a three-figure profit. The S&P 500 (SPX) and Nasdaq Composite (COMP) also finished higher.
He specifically cited the oil giant BP (BP) and the biopharmaceutical company Sorrento (SRNE) as examples. “There’s a lot of nonsense,” he said, “especially during the win-win season, when there’s so much news that it’s hard to keep track of what’s going on.”
The BP leadership, in particular, failed to deal with Cramer, who said it could be the “dumbest action” so far this year. “Not only are you being told that the business is terrible, BP is trying to distance itself from the raw by saving money, but maybe this dividend was a mistake,” he said.
In the case of Sorrento Cramer, he said that last week the shares barely collected when the company announced a new Covid-19 test based on saliva, which gives results within half an hour. But then on Tuesday, stocks jumped for the same reason. “The stock market needs to be efficient,” he said, “but somehow it took him six days on Wall Street to process the news.”
Watch this video:
As for Wednesday’s session, more nonsense? Dow was over 300 points in the last check, while S&P and Nasdaq also added to the latest gains.
“Are any of these moves the fault of the Fed?” Cramer wrote separately. “No, the blame, as Cassius tells us, is not in our stars like Trump or Powell, but in the buyers themselves.”
Video: Jim Cramer: “I can’t accept how stupid this market can be” (CNBC)