"Stock Are Still Badly Oversold" According To CNBC's MAD MONEY Host Jim Cramer

Wall Street’s recent volatility on the developments surrounding the new omicron Covid variant was over-reacting.

The Dow Jones Industrial Average soared 617 points or 1.8% despite two more omicron cases being reported in the U.S. on Thursday while the market was open. 

“We’re still badly oversold” even after Thursday’s rally, Cramer said, pointing to a S&P proprietary oscillator that he follows closely and the elevated Vix, or what’s referred to the fear gauge. “Too much fear means you need to look for buys,” he said. However. the Vix, short for the CBOE’s Volatility Index, did drop 10% in Thursday’s bullish session.

“After a terrific day like today, some people will jump to sell stocks because they feel like they’ve gotten lucky,” Cramer said. “What you need to consider is that there are many others who were waiting for the shelling to stop so they can go over the top and buy. That’s where we are right now.”

Cramer said the bottom line is to “hold tight” because high prices could be ahead for what he calls “down-and-out stocks that have suddenly been given a new lease on life.”

source: CNBC