Earnings season has reached 'maximum disorientation,' Jim Cramer says

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Jim Cramer breaks down the counterintuitive trading in Chipotle and Caterpillar and instructs investors to buy the dip.

"Caterpillar disappoints and roars higher, Chipotle knocks it out of the park and gets hammered, but it all makes sense when you consider the expectations coming into the quarter," he explained. "No, the market hasn't lost its mind, there's just more going on than you may be aware of."

"This is not the same old Caterpillar, where a shortfall like the one that we saw this morning would result in giant layoffs, a suspension of the buyback and maybe even a dividend slice," Cramer said. "If you were listening to the conference call, you could tell the moment when the bad story turned good, because it's when the analysts' ... questions created a very positive impression," Cramer said. "This new CAT is the kind of industrial you can stick with during a downturn. Rather than worrying about CAT, I think you should buy it into weakness, knowing you'll be protected by that buyback and that dividend.

 

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Earnings season has reached 'maximum disorientation,' Jim Cramer says via YouTube

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