High-end retail stocks show signs of higher

High-end retail stocks have made strong gains in recent months and recent trading activity could signal an increase on the horizon, CNBC’s Jim Cramer said Tuesday.

“Non-essential high-end retailers have already worked, but the charts, as interpreted by Bob Lang, suggest that Capri Holdings, Tapestry, LVMH and Nordstrom could have more advantages here thanks, yes, to stimulus controls.” The host “Mad Money” said.

Lang, the founder of ExplosiveOptions.net and a contributor to TheStreet.com, is a trusted technician that Cramer relies on to learn about the state of the market.

Cramer noted that last year was the largest period of retail failures in history, as coronavirus blockages and restrictions hurt the retail landscape of bricks and mortars.

As the United States conducts its Covid-19 vaccination campaign and moves toward a full economic reopening, those companies that lost the damage could be in a position to benefit from another round. of relief expenses that includes a third distribution of direct payments to most Americans.

“This whole group ran out of gas a couple of weeks ago, and Congress agreed to invest $ 2 trillion [the economy] and now they’re looking another leg higher, ”Cramer said.

• Parent company of Versace, Jimmy Choo and Michael Kors
• Shares have risen 38.4% in the past three months, up 7.65% on the S&P 500
• Chaikin’s cash flow, a measure of buying and selling pressure, is high
• The relative strength index, an indicator of momentum, suggests that stocks are in over-purchased territory

“Lang believes this is the kind of stock that is bought in excess, but instead of being afraid, he says it stays in excess,” Cramer said, “meaning he sees he could revisit the old highs.”

• Coach’s parents, Kate Spade and Stuart Weitzman
• Shares have risen 51% in the past three months and have been in dollars over a 52-week high
• Moving Average Convergence Divergence (MACD), an indicator of trend momentum, has recently grown upwards
• Chaikin’s cash flow is strong

“When stocks returned to the 50 – day moving average in January, this was your chance [to buy it] … Lang believes Tapestry is a quiet leader with more room to run, “Cramer said.” It’s more bullish than Tapestry to me. “

• Relative of Louis Vuitton, Hennessy and Christian Dior
• Shares have risen 8.25% in the last three months and are within their recent high
• He has spent months trading sideways, creating a winding spring situation that tends to lead to an upward trend.
• MACD made a bullish crossover, institutional investors are buying

“Lang’s bets that the big boys won’t end up” buying the shares, Cramer said.

• Shares have risen 45% in the last three months
• The 50-day simple moving average exceeded the 200-day moving average in December, a bullish signal
• The bullish cross is known as the “golden cross”

“Lang points out that the MACD is flashing a buy signal right now, and it doesn’t hurt that the last quarter has come in dramatically better than expected,” Cramer said. “Lang’s bet could make a career high in 2018, a 50% increase over here.”