Software engineers straight out of college often make six-figure salaries, not counting equity compensation.Technologyread more
Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
Wall Street, though, is clamoring for a rate cut, with an 85% chance of a move in July and a 61% probability of three reductions by year's end.The Fedread more
A company spokesperson said the outage was the result of a "an internal technology issue" and was not security related.Retailread more
Using MIT's living wage calculator, CNBC Make It mapped out the minimum amount a single parent must earn to meet their basic needs without relying on outside help in every...Earnread more
Mired in a crisis over its best-selling 737 Max plane, Boeing could hand the spotlight over to its rival Airbus at the Paris Air Show.Airlinesread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
You can save money by doing a quick check and unsubscribing from apps you no longer use.Technologyread more
The flattening of the yield curve is exuding a bad omen for the stock market if history is any guide.Marketsread more
Stratolaunch, the world's largest airplane, which flew once, is up for sale, sources familiar told CNBC.Investing in Spaceread more
Transparency is key… or is it? With the first-ever non-transparent, actively managed exchange-traded fund receiving approval from the SEC, "ETF Edge" goes straight to the...ETF Edgeread more
Jim Cramer may not be a chartist, but he understands why charts are so important for predicting the market's major moves.
"You must consider them as if they are footprints at a scene of a crime," the "Mad Money " host said. "These footprints trace out what big money managers might be doing with their buying and selling of stocks."
Cramer cares about charts because there's a remarkable, self-fulfilling nature of charting stocks. Some of the best investment ideas can come from chart-inspired brainstorming sessions, he said.
But for Cramer, the best way to produce results is by carefully analyzing both a stock's fundamentals and its technicals for more comprehensive results.
A good technical analysis means being able to find the indicators that will help to determine the overall direction of the market, especially since so many stocks are influenced by stock futures.
Sometimes, technicians start by comparing the chart of an individual company to the chart of an average to determine the legitimacy of a move, a tactic known as confirmation.
For instance, if the Dow Jones industrial average hits a new high, historically, it is not sustainable unless the Dow Jones transportation average also hits a high, confirming the breakout status of the Dow itself.
If both the industrials and the transports hit new highs, Cramer feels secure blessing the move as legitimate.
"I like to see all of these indexes move up in sync before I truly bless a market move," the "Mad Money" host said. "You get all of these indexes rolling higher, and you have to put the maximum amount of chips on the table."
The inverse is also true. If there's a move up without confirmation from a majority of the indexes, then the whole rally could be fake and shouldn't be trusted. Cramer saw this occur right before the 2008 financial crisis, when there was no participation from the financials, retail or tech.
The "Mad Money" host also considers stocks' advances and declines, which indicate if a rally is too concentrated. He likes to see a market with good participation from many different groups.
Additionally, Cramer looks at the new-high-to-new-low ratio, since stocks that make the new-high list are worth watching. It's not easy to get on the list, so any company hitting new highs must be doing exceptionally well, be part of a strong sector, and be privy to strong geopolitical forces pushing it higher, he said.
"You may not be a technician, but you need to know what the charts are saying and you need to know how to read the internals to verify a real move or a phony one," Cramer added.