Jim Cramer Says Some Stocks Are Bound to Find Their Bottom On Thursday

In an article on CNBC, Mad Money host Jim Cramer said that Wednesday’s sell-off may seem like the end of the world for some. However, “I find it more like an opportunity to buy terrific stocks at lower prices.” Jim advised traders to delve into the market to identify the stocks that may hit the bottom on Thursday instead of panicking at the time when the Dow has plunged 265 points and the S&P 500 has lost 32 point. He stressed that usually a day after such a huge loss, some segments of the market find their footing. Cramer gave examples of the October 1987 crash, immediately after which pharmaceuticals stocks found their bottom, and March 2009, when the high-yielding master limited partnerships such as Kinder Morgan Energy Partners KMP found footing first. Keeping these trends in mind, Cramer recommended traders to follow a similar strategy today for Cisco CSCO, which blew up after the market ended on Wednesday, Sysco SYY, the food distributor. He also asked traders to consider the MLPs and stocks such as Apple AAPL and Cree CREE and buy some “deep-in-the-money calls” on these companies. He also named some of the stocks, such as 3M MMM and Disney DIS, which have fallen despite reporting solid quarters. He also recommended Federal Realty FRT and Consolidated Edison ED as he likes them. Cramer said that these stocks might recover by midday on Thursday as most investors are likely to “regain their senses” after the sell-off that happened on Wednesday. However, the US market is most likely to plunge in the early morning as news from CSCO was bad last night. Read more from Benzinga's Markets.