The tech-heavy index picked up 0.30% during the session to close just above 8,000, about 1.6% off the all-time high it recorded in August.
“Alphabet, Snap and Alibaba have been screaming higher, and as much as we hate to chase on ‘Mad Money,’ the charts, as interpreted by Bob Lang, suggest that all three of these internet stocks have more room to run,” the “Mad Money” host said.
Lang is founder of ExplosiveOptions.net, an options trading service, and a contributor at TheStreet.com, the financial news service co-founded by Cramer. Lang relied on the Ichimoku Cloud and Chaikin Money Flow indicators to make a case, Cramer said.
The Ichimoku Cloud, which has been around for about five decades, measures stock price averages to determine bullish and bearish momentum. The Chaikin oscillator measures buying and selling pressure, Cramer said.
“I don’t know if he’s right, but it never hurts to have the charts on your side,” Cramer said.
The charts are telling a bullish tale about Alphabet, according to Lang.
Shares of Google’s parent have rallied more than 18% in 2019 and recovered all of the stock’s losses since dropping off in early October during the fourth-quarter sell-off.
Alphabet’s 50-day and 200-day moving averages have produced a golden cross, where the former average exceeds the latter average — a marker hedge fund managers love to see, he explained.
“The stock has recently been making a series of small inverse head-and-shoulders formation … it looks like an upside down person. And this is one of the most reliably bullish patterns in the book,” he said.
The stock is now close