Chinese officials will be in Washington on Wednesday to hold consultations with the U.S. ahead of high-level trade talks in October.World Economyread more
President Donald Trump said Monday he's in no rush to respond to a coordinated attack that hit Saudi Arabia's oil industry over the weekend.Marketsread more
The price of oil could go sharply higher, depending on the duration of the disruption at Saudi oil facilities and whether there is a military response.Powering the Futureread more
Energy stocks, one of the worst-performing sectors this year, spiked Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
After a series of setbacks on the road to an initial public offering, the parent company of real estate start-up WeWork is delaying the move, sources told CNBC Monday.Technologyread more
"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the international rules-based order that...Politicsread more
Crude oil's spike following attacks on Saudi Arabia's energy supply has experts weighing whether or not the gains will last.ETF Edgeread more
"In the old days, the averages would've plunged on this kind of oil shock. I know because I've lived through a bunch of them, starting in 1973," Jim Cramer says.Mad Money with Jim Cramerread more
Traders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.The Fedread more
The meeting comes amid months of stalled trade talks between Washington and New Delhi, resulting in both sides taking retaliatory measures.Asia Politicsread 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.