The world has changed and your investments should change too, Jim Cramer told his Mad Money viewers Monday night. What was driving the markets higher Monday was hope, but Cramer reminded viewers that hope is not an investment strategy.
There was, however, Simon Property Group Inc. (SPG) . Cramer said this was the only investable name on the day's list of winners Monday, which he discusses in his Real Money column. He's betting the company can replace struggling tenants with new ones and maintain their dividend.
Let's check out the charts and indicators.
In the daily bar chart of SPG, below, we used a "log scale" to show the price action as prices traveled a long distance the past 12 months. The stock plunged about $100 in just a few weeks but the bigger story is that the decline did not start in February. The problems that sellers saw went back much further. Prices are below the declining 50-day and 200-day moving average line.
The daily On-Balance-Volume (OBV) line declined into early April and shows a little stability now. The 12-day price momentum study does not show a bullish divergence into the March low and not much in the way of upside momentum either. It does not look like investors used the price weakness to buy.
In the weekly bar chart of SPG, below, we find only bearish signals. Prices are below the declining 40-week moving average line.
The weekly OBV line has been pointed down since October and the 12-week price momentum study does not show us a bullish divergence yet.
In this daily Point and Figure chart of SPG, below, we can see a potential upside price target in the $88 area but there is overhead chart resistance.
Bottom-line strategy: SPG may have a future in real estate but the future of its stock price will need a base pattern.