The baton has been passed from the stay-at-home stocks to the travel and leisure names, Jim Cramer told his "Mad Money" viewers Tuesday night. But it's still not too late to cash in on the transition, Cramer added, as many of these stocks are only just now getting started.
Tuesday we heard from a number of retailers, including Walmart (WMT) , Home Depot (HD) and Macy's (M) , all of which told us that consumers are engaging in America's favorite pastime, shopping. What's most interesting to note, however, was Macy's, which told investors one of the hottest categories this quarter was luggage. We can also report that Macy's was upgraded to a hold by TheStreet's Quant Ratings service.
Let's check out the charts and indicators.
In this daily bar chart of M, below, we can see that prices have been strengthening since early November. Prices are now trading above the rising 50-day moving average line but we can see many tests of the line since late March. The On-Balance-Volume (OBV) line has been declining slightly from a peak in March. There seems to be a slight shift towards more aggressive selling but it has not hurt prices. The Moving Average Convergence Divergence (MACD) oscillator just turned to the upside for a new outright-buy signal.
In this weekly Japanese candlestick chart of M, below, we can see that prices are working higher. They are trading above the rising 40-week moving average line. The weekly OBV line is pointed up and the MACD oscillator is above the zero-line, but the two averages are on top of each other. A fresh buy signal could come without much price strength.
In this daily Point and Figure chart of M, below, we can see a potential upside price target in the $27 area. A trade at $15.46 or lower could weaken the chart.
Bottom line strategy: Cramer seems to like Macy's and so does the quant service. As a technician I would trade M from the long side, risking a close below $14 for now. The $27 area is the price target.