Jim Cramer Says Mistaken Selling Creates Opportunities To Buy Dips: Bears 'Still Don't Know What Hit Them'

Prominent market commentator Jim Cramer asked investors not to get swayed by market bears and use their missteps to boost their own portfolios.

“Their mistaken selling creates opportunities for you to buy the dips. You need to have [the] conviction that the sellers are wrong and you’re right. You need to believe in your view, not the view the tape gives you — that the bears give you,” Cramer said according to a CNBC report. Also Read: Best S&P 500 ETFs

Major Wall Street indices closed in the green on Wednesday after the Federal Reserve dialed down the pace of its rate hike to 25 basis points on expected lines as Chair Jerome Powell acknowledged inflation has begun declining. The SPDR S&P 500 ETF Trust (NYSE: SPY) closed 1.06% higher on Wednesday while the Invesco QQQ Trust Series 1 (NASDAQ: QQQ) gained 2.14%.

Trading Approach: Cramer pointed out that while selling would have been the right way to go when inflation was still surging and the Fed was aggressively hiking rates, a bearish approach to trading doesn’t work anymore.

“It no longer makes sense once the Fed says the rate hikes are working and we’re pretty far along in the tightening cycle, even as they are still seeing some wage inflation,” he said.

Cramer also said that the market is currently in a bull mode and that bears really got hit on Wednesday.

“Those who keep fighting the bull, as they did today, think they’re in a bear market, and they get trampled. Today was a real trampler, and the bears — they still don’t know what hit them,” he said, according to the report.

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