Jim Cramer: We need more 'negativity' in the market before you can start buying again

The indexes are all more than 1.2% off their highs that came before the Thanksgiving holiday, according to FactSet."and it was much more of a hammering than any of the averages [appeared], because there's not enough negativity. Once people start worrying again, stocks will come down to more reasonable levels and then you can pounce, but we're not there yet."

The technology sector, especially the cloud segment, felt the brunt of the negative Monday trading. The sell-off was triggered in part by institutional investors seeking to pocket their gains during the first trading days of a new month, Cramer noted. Stocks grouped in exchange-traded funds were further dragged by the activity as witnessed in the past, he said.

"We've seen it regularly since the software-as-a-service meltdown in April of 2014," Cramer said. "You have to be careful because these kinds of moves can be brutal and, more important, they can be longer-lasting than the typical dip. In 2014 the whole group got hammered, led bySalesforce, the customer relationship management cloud platform, is slated to report third-quarter earnings Tuesday afternoon.

He pointed out that the security had "four major declines since 2014" and that they were "multiday or even multiweek shellackings." "If you're nimble enough to be a trader, then I actually would lighten up here and then buy it back at a lower level, but for most people that's a bad piece of advice," Cramer said. "I think you should stick with it through the pain because you never know if you'll be fast enough to actually get back in [at] a better price."

phase 1 trade deal close?

well said

That’s not what he was saying this morning. This morning all he saw was positive things in market, now all of a sudden on mad money, he sees negativity. Who changed his mind? Network, wife, daughters? Seems he listens to them a lot.

I was all over the 'too bullish sentiment' in my videos, and all my social media posts LAST WEEK.

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