Cramer examines market motion and explains why there are few sellers

‘s Jim Cramer mentioned Thursday he sees an “incredible moment” unfolding on Wall Street because the variety of events curious about shopping for shares far exceeds those that need to promote amid the Federal Reserve’s rate-cutting cycle and a second Donald Trump presidential time period now looming.

“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 mentioned. “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.”

Wednesday’s momentum largely continued throughout Thursday’s session, as traders deemed a decisive Trump victory to broadly bode properly for Wall Street and large enterprise. The S&P 500 and the Nasdaq Composite closed at document highs, advancing 0.74% and 1.51%, respectively.

Cramer used Home Depot‘s inventory strikes for example what he known as “a dearth of sellers,” explaining how shares had been in a position to advance 2.85% by the shut. He first identified that housing-adjacent shares like the house enchancment retailer are inclined to do properly when the Fed cuts charges — and the central financial institution unanimously determined Thursday to make a 25 foundation level reduce.

Investors aren’t promoting shares to purchase preliminary public choices as a result of there aren’t a number of them, he added. He additionally mentioned that many aggressive buybacks have lowered shares excellent, and few firms are promoting shares to boost cash as a result of they’ve stable steadiness 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 mentioned. “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.”