Cramer says the ‘Easter rally’ could mean upward for these retail stocks

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

The ‘Mad Money’ host looked at the stock analysis of noted technician Larry Williams, who took into account transactions from the past to plot which direction Costco, Amazon, Walmart and Shopify stocks could move during the early days of the spring.

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

Each of the stock is down year-on-year, except for Shopify, which is trading 2% higher. Costco is down 10% so far this year after a 28% increase in 2020.

These retail-focused stocks have the potential to climb higher, Williams says, if only in the short term. Cramer called it an “Easter gathering” and named it after the holiday less than two weeks away.

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

Going through Williams’s chart analysis, Cramer noted how the retail group tends to recover in the days before or after the Easter holidays. However, he stopped recommending how market participants could trade and make a profit at the time.

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

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

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