One of the day’s best performing groups in Tuesday’s market rally was high-flying momentum stocks, which have been hammered of late, Cramer said. So does that mean its time to buy or is this an opportunity to take profits?
John Roque, a highly regarded Wall Street technician, calls this high growth momentum group the “Pretty Girls” and he thinks they’re still dangerous.
Among the names on the list: Baidu , Chipotle , Deckers Outdoors , Estee Lauder , Fossil , Green Mountain Coffee Roasters , Hansen Natural , Lululemon Athletica , NetEase , Netflix , Priceline.com , Salesforce.com , Whole Foods Market , Wynn Resorts , and Yum! Brands .
“The charts as interpreted by John Roque say you shouldn't allow yourself to be seduced by today's fabulous rally in the pretty girl momentum stocks, since they still have a long way to fall before they're done going lower,” Jim Cramer said.
The “Mad Money” host said he’d use this rally to “lighten up” on these high flyers and circle back to higher yielding names.
To further explain Roque’s argument, Cramer went “Off the Charts.” Watch the video now!