Has Tech Finally Turned the Corner?
By and large, technology stocks took a beating this summer. The only exceptions, Cramer said, are stocks under the Apple umbrella and cloud-computing plays, like Salesforce.com . But when the market started to rally Monday, the tech stocks followed suit. That begs the question: Will it last? And it appears the answer is yes.
"The seasonality is now on tech’s side," explained Cramer. "Historically, September has been a great month to buy the group in anticipation of the holidays."
The "Mad Money" host also thinks the "non-stop downgrades" from Wall Street analysts will soon come to an end because "there's only so many times you can downgrade a stock." While Cramer said he believes in the rally, he added that stocks can only go higher if the technicals allow them to. That's why he consulted Tim Collins, a widely regarded technical analyst, who interpreted just what the charts are saying about this rally. Watch the video to see his full analysis.
When this post was published, Cramer's charitable trust owned Apple.
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