Market Insights from Jim Cramer
CNBC’s Jim Cramer expressed on Thursday that although it might seem counterintuitive to buy stocks during volatile times, history often suggests that this could be the smartest move. “Sometimes you have to hold your nose and buy,” he noted on “Mad Money,” acknowledging how challenging it can be to control one’s emotions during such times. The reality is, short-term losses can happen before any long-term gains materialize. He added, “History tells us that when the average falls too quickly, you need to become a buyer because when the market is oversold, it always rebounds.”
This advice comes on the heels of Wall Street experiencing a second consecutive day of losses, attributed to the ongoing situation in the Iran war. Notably, the Dow Jones Industrial Average, S&P 500, and Nasdaq all closed lower as international crude oil prices increased by 1.2% to $108.65 per barrel, although they were far from their lowest levels earlier in the day. Brent oil prices briefly surged to $119 following attacks on energy facilities in Qatar and Iran, but later dropped after Israeli Prime Minister Benjamin Netanyahu affirmed support for U.S. efforts to keep the Strait of Hormuz open—a critical route for oil shipments that Iran intends to blockade.
To pinpoint these historical buying opportunities, Cramer relies on the S&P Short Range Oscillator, a momentum indicator he’s trusted for decades. As of Thursday’s closing numbers, this oscillator has indicated an oversold market for eight straight sessions. In light of this, Cramer is keen to invest when these conditions arise. Members of the CNBC Investment Club received notifications about potential trades for two stocks around noon, while Cramer aims to secure profits in what appears to be an overbought market, the likes of which hasn’t been seen since July 2025.
“I’ve been studying this oscillator since 1987, and it rarely leads me astray. When you buy into a deeply oversold market… within the next 30 days, it often starts buzzing like bandits,” Cramer commented. He pointed to an even sharper oversold signal back in April 2025, noting that the S&P 500 had a positive trajectory after President Donald Trump’s “Emancipation Day” tariff announcement.
“History indicates that significant rallies follow an oversold condition, and these trends tend to persist. I’m going to trust that history. It’s too clear and accurate to ignore,” Cramer concluded.
