Cramer’s reason for Thursday’s sell-off was simpler than what he saw on his Twitter feed.
“It’s August. It’s slow. It’s thin. It’s time for vacation. Stocks have had a big move. Why not sell some?” the “Mad Money” host said. “I bet this sell-off isn’t done. It could get uglier. We’re due. I also believe we’ll get a bunch of sell-offs like this one over the next six weeks because that’s what happens every year at this time. I’ve been telling you this. So, if you haven’t done so already, please sell your least favorite stocks tomorrow to raise some cash so that you’ll be ready to pick up your most favorites as they come down and become bargains.”
“The calendar and these weak-handed momentum shareholders that have gone along for the ride have coalesced to produce a wave of selling,” he said. “Now you have to ask yourself, will the president seize that as an excuse to deflect anyone who wants to link this decline to the White House, blame it on August? Why not? Beats blaming the CEOs who broke with the president, unless you’re the kind of guy who just loves having someone to blame.”