Jim Cramer argued that Wall Street is denying market strength and that investors are ignoring falling oil prices and what he calls the “President’s Put.”
“When you have doubts about this market, look where oil is going. Ignore the people who scoff at every word that comes out of the president’s mouth,” Cramer said Wednesday on “Mad Money,” noting that President Donald Trump has often been successful in snapping markets out of ruts.
Cramer said the street chose to ignore Wednesday’s pullback and focus on the doom and gloom of rising oil prices.
“Everyone was acting like oil prices were still going up,” Cramer said.
Oil fell on Wednesday amid investor optimism that the United States and Iran could agree to a ceasefire. This was a reaction to reports that Iran had received a 15-point proposal from the United States to end the war. On Wednesday, Iranian state media announced that Iran rejected the offer and instead announced a five-point plan conditional on Iran taking control of the Strait of Hormuz.
International benchmark Brent crude oil fell 2.17% to settle at $102.22 per barrel, while West Texas Intermediate followed the move, falling 2.2% to $90.32 per barrel.
“We’re seeing negativity all over the place and that’s really impacting everyone’s performance,” Cramer said, noting the stock’s rise on Wednesday.
of Dow Jones Industrial Average 300 points went up. The S&P 500 and Nasdaq Composite also closed slightly higher.
“Anyone shorting at this point has to stop because the President’s put has spoken,” Cramer said. “The president likes not to confuse the markets, and he knows what people want to hear.”
Cramer said investors should stop ignoring the truth of what’s happening in both oil and the broader market.
“Please stop denying your drinking,” Kramer said. “I’m going to get sick.”
