Cramer says “Easter high” could mean rising retail stocks

CNBC’s Jim Cramer broke a seasonal trading pattern in retail stocks on Tuesday that he thinks investors should know about.

The presenter of “Mad Money” reviewed the stock analysis of the famous coach Larry Williams, who took into account previous negotiations to chart how the shares of Costco, Amazon, Walmart and Shopify could move during the early days of spring.

“If history is any guide, Williams is betting that the rising April tide could lift all retail ships,” said Cramer.

Each of the shares is down in the year, except for Shopify, which is trading 2% more. Costco has fallen 10% so far this year, after rising 28% in 2020.

These retail-oriented stocks are in a position to rise further, says Williams, if only in the short term. Cramer called it an “Easter rally,” named after the holiday less than two weeks away.

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

Reviewing the analysis of Williams’ charts, Cramer noted how the retail group tends to recover in the days before or after the Easter holiday. He did not, however, recommend how market participants could operate at the moment and make a profit.

“If you are concerned about turnover, you can use the high at essential retailers to register the record,” said Cramer. “As much as I like these long-term companies and don’t want to trade them, I can’t blame anyone for making a profit.”

Disclosure: Cramer’s charity fund has shares in Walmart, Costco and Amazon.

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