Former hedge fund manager and renowned CNBC TV host Jim Cramer is sounding the alarm on certain speculative pockets of the market, urging investors to sell into the “snapback” momentum if they haven’t already done so.
Speculators Will ‘Not Go Down Without A Fight’
On Tuesday, Cramer cautioned investors that certain speculative plays in quantum computing, data centers, and nuclear energy, alongside gold and silver, will “not go down without a fight.”
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According to Cramer, speculators will continue vying for “a snapback,” which essentially refers to a recovery following the decline in the stocks. He said investors should avoid being fooled by such rallies, and instead they should consider selling into them if they “haven’t already.”
The comment comes amid heightened volatility in sectors that have seen sharp rallies in recent months and have since become disconnected from fundamentals.
Steep Decline In Speculative Stocks, Precious Metals
Cramer’s advice comes following steep declines in stocks across these sectors during the day, with gold and silver registering their largest single-day drop in years, dropping 5.2% and 6.7%, respectively.
Quantum computing stocks such as Rigetti Computing Inc. (NASDAQ:RGTI), Quantum Computing Inc. (NASDAQ:QUBT) and D-Wave Quantum Inc. (NYSE:QBTS) have dropped 7.64%, 7.41% and 6.42%, respectively, alongside nuclear energy company Oklo Inc. (NYSE:OKLO), which is down 12.33%.
Similarly, popular data center stocks such as IREN Ltd. (NASDAQ:IREN) and CoreWeave Inc. (NASDAQ:CRWV) are down 6.80% and 1.57%, respectively.
This comes despite most major indices being flat during the day, with the S&P 500 up 0.003%, followed by the Nasdaq Composite index down by 0.16%, and finally the Dow Jones Industrial Average, which was up 0.47%.
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