Cramer examines Thursday's market action and explains why there are few sellers

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CNBC’s Jim Cramer said he sees an “incredible moment” unfolding on Wall Street as the number of parties interested in buying stocks exceeds…

CNBC's Jim Cramer said he sees an"incredible moment" unfolding on Wall Street as the number of parties interested in buying stocks far exceeds those who want to sell.

"In a market with so few sellers and so many buyers, those buyers need to pay up if they want to get their hands on some shares," he said."But they're willing to pay up because they're so worried that tomorrow a lot of them will have to pay even more than they did today." Cramer used Home Depot's stock moves to illustrate what he called"a dearth of sellers," explaining how shares were able to advance 2.85% by the close.

Investors aren't selling shares to buy initial public offerings because there aren't a lot of them, he added. He also said that many aggressive buybacks have reduced shares outstanding, and few companies are selling shares to raise money because they have solid balance sheets. "It is an incredible moment, people, that's not being talked about enough or celebrated. The sellers are afraid to sell, the buyers are incredibly eager to buy," Cramer said."And that's how the stock of Home Depot can rally $11 today on no real news aside from a widely-anticipated rate cut. But who knows what will happen tomorrow."Decision 2024

 

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