Off The Charts: Goldman Sachs

Faithful Mad Money viewers know that Cramer likes to concentrate on fundamentals - information about the health of a company – before making any decision about a stock. But even Cramer knows that, at certain times, it can be more important to pay attention to what big money managers are doing with their shares.

Unfortunately, because of the secrecy of Wall Street, you can’t just call up brokers and ask what they’re buying. So, Cramer says, you have to come up with a substitute for this information: look at charts to find sophisticated patterns that mimic the minds of major institutional shareholders.

So now, Cramer is going “Off The Charts,” and is demonstrating how some top market technicians use charts as a substitute for knowing how big money thinks. Given that the market is “toppy” - buyers seem exhausted and may have run out of steam to pay up for stocks – the charts can help us determine which ones are truly exhausted.

Right now Rick Bensignor, who employs this strategy and hails from says that Goldman Sachs is a sell. Is this lunacy? Cramer takes a look at Goldman’s chart to get to the bottom of whether or not buyers are exhausted and if this “sell” recommendation is warranted. Would Cramer be a buyer or a seller? Watch the video to see his full analysis.

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