Tuesday plays host to Mad Money’s weekly “Off the Charts” segment. It’s a Mad Max Beyond Thunderdome “two analyst enter, one analyst leave” type showdown on who’s right about a stock, technicians or fundamentals-based investors.
Cramer has always been partial to the fundamentals, a stock’s underlying business. He looks at technical analysis, the study of performance charts, as nothing more than divination. It’s more hocus-pocus than actual homework, he says, and Wall Street’s version of reading tarot cards, or chicken guts for that matter, is no way to trade stocks.
The problem, though, is that a lot of money managers follow the charts. So it’s important for the rest of us to know what motivates their stock choices because these guys set share prices. And that’s why Cramer created this segment, even though he won’t endorse technical analysis as an investment strategy.
The topic of this week’s debate? Yum! Brands . Technicians have their take on the stock, and, of course, so does Cramer. Watch the video and decide for yourself who is right.
Cramer’s charitable trust owns Yum! Brands.
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