Cramer explains how to recognize “exquisite moments” like Friday’s session

Cramer breaks down the signs to figure out when to spot an exquisite market moment

CNBC’s Jim Cramer looked back at Friday’s market action and called the session an “exquisite moment” in which stocks opened weak but average prices climbed by the close. While he said that this special moment has come and gone, he listed ways investors could recognize it in the future and said that these conditions could bring big profits.

“We used to call days like this ‘exquisite moments.’ These are moments when the bears get ahead of themselves because they don’t know when to stop,” he said. “We had one this morning.”

After a difficult week on Wall Street – the Dow Jones Industrial Average fell 1,100 points in a single session, posting the index’s longest losing streak in about 50 years bounced off on Friday. The 30-stock Dow gained 1.18% to close the week, during the S&P 500 climbed 1.09% and the Nasdaq Composite 1.03% added.

These “exquisite moments,” according to Cramer, occur when the market is oversold. To identify market conditions, he said he uses MarketEdge’s S&P oscillator, which shows when too much is being bought or sold. Cramer added that these “exquisite moments” occur when bearish investors display “overconfidence,” and said similar events occurred in key stocks on Friday Palantir, Apple And Nvidia Rejection at the beginning of the meeting for no apparent reason.

Investors should pay attention to positive economic data even when the market is oversold, Cramer continued. He suggested that some of Friday’s upward move was due to cooler U.S. numbers Price index of personal consumption expendituresA Key metric for the Federal Reserve. Finally, he said, news that counters the downturn should also be kept an eye on. Investors hesitated after the Fed indicated it would make fewer rate cuts than expected next year. But on Friday, a Fed official said he was encouraged by the PCE report and said interest rates could still fall even if the central bank remains cautious.

“It was actually an exquisite moment this morning,” Cramer said. “They don’t come around too often. But if you do, you have no choice but to pounce on it.”