With the recent volatility at Wall Street due to the developments of the new Omicron variant, Jim Cramer has considered stock sentiments fickle. The Dow Jones Industrial Average went about soaring 617 points, or 1.8% despite two more variants being reported in the U.S. on Thursday while the market opened up.
Five more cases emerged after the market was closed. Dow futures also turned negative hours after trading. The first case in the US with the new variant was reported the day before the Dow went from a gain of 520 points to a loss of 460 points.
Wall Street Stocks In A Period Of Uncertainty
Cramer also mentioned that most of the investors at Wall Street have seemingly accepted that the omicron variant is just another thing they would have to deal with now. Of course, if this strain of coronavirus turns out to be worse than Delta and everyone remains submerged under a huge wave of hospitalizations, then one would definitely be looking towards the bullishness as simply a temporary condition of insanity.
As of now, Cramer believes that there is quite a lot of negativity in the market that would come forth with the session on Thursday- which would make it easy for stocks to be rallied forwards. In addition to the decline on Wednesday, the Dow Average of Wall Street also went down by 1.8% on Tuesday, after it experienced quite a relief on Monday. Blue chips managed to sink 2.5% in a holiday-shortened session on Friday after the coronavirus strain was revealed to have been discovered in South Africa.
Even after the rally on Thursday, Cramer noted that everyone was still badly oversold- pointing to an S&P proprietary oscillator that he followed religiously, along with the elevated Vix, or what has been usually referred to as the fear gauge. Cramer mentioned that the bottom line amidst everything would be for Wall Street to hold tight because the rise in prices could definitely be ahead of what he calls a new lease of life for stocks.