The past few months have been a very difficult time for both pharmaceutical and biotech stocks. The group initially came under fire when Hillary Clinton crushed the sector with a tweet accusing companies of price gouging. Now with Congressional investigations into drug pricing and stocks like Valeant getting crushed, Jim Cramer wondered when the selling will stop.
"For all of the sound and fury from Washington, I think that eventually people will realize that they are throwing the baby out with the bathwater when they sell every drugmaker under the sun," the "Mad Money" host said.
More importantly, with an economic slowdown coming, these are exactly the kind of stocks that Cramer wants investors to buy. However, he also knows that trying to bottom fish in the drug space has been a dangerous endeavor.
That is why Cramer turned to Bruce Kamich to take a look at what the charts have in store for the future. Kamich is a chartered market technician, a professor at Baruch College and Cramer's colleague at RealMoney.com.
Kamich found that while some health care and biotech stocks still look vulnerable, the pharmaceutical space appears to have bottomed. In fact, Cramer thinks Bristol-Myers Squibb could shoot to the moon!