Cramer’s C.A.N.D.I.E.S. continued to outperform most stocks, he said Tuesday, but it isn’t a question of just the fundamentals. Not in this technically driven market. To get a better idea of how strong these seven “ultra high-octane” growth names are – and how important they are to the markets, Mad Money had to go Off the Charts.
For those not in the know, C.A.N.D.I.E.S. stands for: Chipotle , Apple , Netflix , Deckers Outdoor , Intuitive Surgical , Express Scripts and Salesforce.com . This is the group that Cramer has been recommending to take advantage of the markets’ powerful surges higher after repeated down days in the Dow, Nasdaq and S&P 500. Why? Because they snap back the hardest.
On the way down, the C.A.N.D.I.E.S. drop about 25% lower than the S&P 500, but when they rally the upside has been anywhere from five to 30 times greater than the S&P.
“These are some really amazing snapback figures,” Cramer said, “figures that literally hurl most of these stocks right back on the 52-week high list.”
What has been truly amazing, though, is these stocks’ ability to perform so consistently in a market that has been so unreliable. Cramer can’t point to the fundamentals, so there has to be another explanation, like the technicals.
Cramer had technician Tim Collins put all seven stocks in an index, called the CANDEX, and plotted it against the S&P. What did the charts reveal? Just the “simple, raw power” of the C.A.N.D.I.E.S. Watch the video for Cramer’s full report.
When this story published, Cramer's charitable trust owned Apple.
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