High-quality retail stocks are showing signs of more upside potential

High-end retail stocks have seen a surge in recent months, and recent trading activity could indicate more upward movement on the horizon, CNBC’s Jim Cramer said Tuesday.

The nonessential high-end retailers are already up and running, but the charts, as interpreted by Bob Lang, suggest that Capri Holdings, Tapestry, LVMH and Nordstrom could all have more benefits thanks to, yes, the incentive checks, “the” Mad Money ”said the host.

Long, the founder of ExplosiveOptions.net and an employee of TheStreet.com, is a trusted engineer that Cramer relies on to read the state of the market.

Cramer noted that last year was the largest period of store failures in history, as the coronavirus blockages and restrictions caused a dent in the physical retail landscape.

As the US carries out its vaccination campaign against Covid-19 and moves closer to a full economic reopening, the companies that survived the damage could be able to take advantage of another round of aid spending, including a third split of direct payments to most Americans. .

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

• Parent company of Versace, Jimmy Choo and Michael Kors
• Stock is up 38.4% in the last three months, better than 7.65% in the S&P 500
• Chaikin Money Flow, a measure of buying and selling pressure, is high
• The relative strength index, a momentum indicator, suggests stocks are in overbought territory

Long thinks this is the kind of stock that will be over-bought, but instead of fearful, he says it’s being bought too much, Cramer said, meaning he sees it could revisit the old highs. ‘

• Parent of Coach, Kate Spade and Stuart Weitzman
• The stock is up 51% in the past three months and is within the dollar of its 52-week high
• Moving Average Convergence Divergence (MACD), a trend momentum indicator, recently made a bullish crossover
• Chaikin The flow of money is strong

“When the stock pulled back to the 50-day moving average in January, that was your chance [to buy it] “Long thinks Tapestry is a quiet leader with more room to run,” Cramer said. He’s more optimistic about Tapestry than I am. ‘

• Parent of Louis Vuitton, Hennessy and Christian Dior
• The stock is up 8.25% in the past three months and is within range of its recent high
• Has acted sideways for months, creating a spiraling spring situation that tends to trend upward
• MACD made a bullish crossover, buying institutional investors

“Long bets that the big boys are not ready yet,” said Cramer.

• The stock is up 45% in the last three months
• Simple 50-day moving average exceeded December 200-day moving average, a bullish signal
• The bullish crossover is known as a ‘golden cross’

“Lang points out that the MACD is showing a buy signal at this point, and it doesn’t hurt that the last quarter was spectacularly better than expected,” Cramer said. “Long bets it could run at the peak of 2018, about 50% from here.”