Cramer says “Easter concentration” could mean a rise in these retail stocks

CNBC’s Jim Cramer on Tuesday broke a seasonal retail trading pattern he believes investors should take into account.

The host of “Mad Money” reviewed the stock analysis of prominent technician Larry Williams, who considered previous operations to choose how the shares of Costco, Amazon, Walmart and Shopify could move during the first days of spring.

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

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

These retail-oriented stocks are in a position to rise further, according to Williams, albeit in the short term. Cramer called it the “Easter rally,” calling it after the holidays less than two weeks away.

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

Reviewing Williams ’chart analysis, Cramer noted how the retail group tends to meet in the days before or after the Easter break. However, he stopped recommending how market participants could change the timing and make a profit.

“If you’re concerned about rotation, you may want to use concentration at essential retailers to call the registry,” Cramer said. “As much as I like these companies in the long run and don’t want to change them, I can’t blame anyone for making a profit.”

Disclosure: Cramer’s solidarity trust has shares in Walmart, Costco and Amazon.

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