Cramer says ‘Easter march’ could mean upside in these retail stocks

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

The ‘Mad Money’ host reviewed the stock analysis of renowned technician Larry Williams, which took into account previous operations to determine how the shares of Costco, Amazon, Walmart and Shopify were traded during the early days of the spring could move.

“If history is a guideline, Williams bets that a rising tide in April could lift all retailers,” Cramer said.

Each of the shares is lower than the year, except for Shopify, which trades 2% higher. Costco has fallen 10% so far this year after rising 28% in 2020.

These retail-oriented stocks are able to climb higher, Williams says, if only in the short term. Cramer calls it an ‘Easter march’, referring to the holiday that is less than two weeks away.

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

In reviewing Williams’ graphical analysis, Cramer noted how the retail group tends to meet in the days before or after the Easter holidays. However, he stops short to recommend how market participants can trade at the moment and make a profit.

“If you’m worried about the rotation, you may want to use the rally in the essential retailers to call the registry,” Cramer said. “As much as I like these companies in the long run and do not want to trade them, I can not blame anyone for making a profit.”

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

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