Jim Cramer breaks down how investors can decipher a 'signal' from the 'noise' in a stock's action.
"Don't put too much significance on day-to-day gyrations in the share price," CNBC's Jim Cramer says.
Investors should take a look at a company's fundamentals in order to decipher a "signal" from the "noise" in a particular stock's moves on the market, CNBC'sA signal means that a stock will keep running in the same direction. Noise, on the other hand, is just noise, which could be a one-time occurrence.host said.
"This is the sort of rally that doesn't convey much information. It's technical. It's noise," he said. "A stock got oversold, it bounced, and unless something else changes, it can go right back down once it works off that bounce."
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