For his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Jim Snee, president, chairman and CEO of Hormel Foods Corp. (HRL) , another company that just reported record quarterly results.
Snee explained that Hormel saw strength in all of its iconic brands, such as Spam, but also in many of its lesser-known brands.
When asked about the strength in items like peanut butter, Snee said peanut butter has always been a staple in American households, but Skippy continues to innovate with squeezable products, no-added-sugar products and even peanut butter with extra protein.
Let's check out the charts of HRL.
We last reviewed the charts of HRL on March 19 and wrote that, "Someone just showed you a bullish set of charts and indicators. Will you consider going long or will you stay bearish because you see so many other stocks that are weak? It is a market of stocks and not a stock market is the old saying. I would approach HRL from the long side, risking below $47." We also gave a target in the $75 area. Dramatic swings would have stopped us out but the uptrend did unfold.
In the daily bar chart of HRL, below, we can see a triangle formation from April to July before prices resumed the rally. HRL is trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has been rising since early May and is bullish. The Moving Average Convergence Divergence (MACD) oscillator turned bullish at the end of March but is now rolling over to a take profits sell signal.