CNBC’s Jim Cramer discussed three ways investors might locate buying opportunities after markets took a dive to start the trading week Tuesday. “On down days, remember the three types of stocks to buy: the ones that rallied nevertheless, the ones where you’re finally receiving a long-awaited downturn, and the ones that got recommended but failed to rally due to the lousy tape,” the “Mad Money” host added. “Take your pick [or] do all three, as long as you view the sell-off as an opportunity rather than a reason to panic.” Cramer advised investors to look at Apple and Amazon, both of which saw their stock prices rise by 1.4 percent and 4.7 percent, respectively. He also recommended investing in an oil firm like Devon Energy. Devon has lost over 10% of its value in the last month, with the stock falling roughly 5% on Tuesday alone. Cramer suggested seeking stocks of firms that failed to rally despite a strong news catalyst for the third category of equities. According to him, American Express shares should have gone $4 higher on Tuesday after a Goldman Sachs analyst upgraded it to a buy call. Cramer said, “Think of these equities as textbook examples of what you can purchase on a down day.” The S&P 500 fell for the first time in nearly two weeks, while the Dow Jones Industrial Average failed to post its fifth consecutive day of advances. The Nasdaq Composite, on the other hand, gained 0.17 percent to settle at a new high. “We nearly never get the timing right when we acquire equities. I consider it a miracle when you buy a stock at the precise bottom. Much more frequently than not, you’ll buy it too soon or too late “Cramer gave his opinion. “As a result, you must allow space so that if the stock falls in value, you will not panic and sell. Instead, you can just accept the pain and acquire more stock in a solid firm at a cheaper price.” Apple and Amazon are both owned by Cramer’s charitable trust. Disclaimer Do you have any questions for Cramer? Cramer may be reached at 1-800-743-CNBC. Interested in learning more about Cramer’s world? Make contact with him! Money that’s out of control Jim Cramer on Twitter Twitter, Facebook, and Instagram are three of the most popular social media platforms. If you have any questions, comments, or recommendations for the “Mad Money” website, please send them to madcap@cnbc.com./n
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