Cramer says ‘Easter rally’ could mean a rise in those retail stocks

CNBC’s Jim Cramer on Tuesday broke down a seasonal trading pattern in retail stocks that he thinks investors should be aware of.

Host “Mad Money” examined the inventory analysis of renowned technician Larry Williams, who took into account past transactions to chart how the shares of Costco, Amazon, Walmart and Shopify might move during the early days. of spring.

“If history is any guide, Williams is betting an April rising tide will be able to lift all retail ships,” Cramer said.

Every stock is down for the year, with the exception of Shopify, which is trading 2% higher. Costco is down 10% so far this year after climbing 28% in 2020.

These retail-oriented stocks are likely to climb, Williams says, if only for the short term. Cramer called it an “Easter gathering,” naming it after the holidays less than two weeks old.

“I think the movement may have already started,” he said.

Reviewing Williams’ graphical analysis, Cramer noted how the retail group tended to come together in the days before or after the Easter holidays. However, he refrained from recommending how market participants might trade the moment and make a profit.

“If you’re worried about the rotation, you might want to use the rally at essential retailers to get the register ringing,” Cramer said. “Even though I love these companies for the long haul and don’t want to trade them in, I can’t fault anyone for making a profit.”

Disclosure: The Cramer charitable trust owns shares of Walmart, Costco and Amazon.

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