Many of Wall Street’s biggest money managers study charts to divine a stock’s future performance. That’s why it’s important to understand this technical analysis, as it’s called. After all, these guys set the market’s prices, so investors need to know what’s behind their moves.
Cramer lately has spent a lot of time explaining charts. Hence the creation of Mad Money’s new “Off the Charts” segment. He’s trying to give investors any edge he can during this recession. For this week’s edition, “trade-down plays,” or stocks that thrive during a downturn, were the focus.
Technicians say that both Family Dollar and Big Lots are buys, but the fundamentals seem to indicate that there’s only one winner here. Cramer’s always preferred that latter school of investing, but let’s take a look at the charts to better understand the technicians’ bullish call.