CNBC’s Jim Cramer said Monday there could be an opportunity to buy stocks ahead of a possible rally.
“The charts interpreted by Larry Williams suggest Christmas is not being canceled for Wall Street – he believes we are still in for a Santa Claus rally and the ideal time to buy is sometime around this Thursday,” he said .
Shares fell for the fourth straight session on Monday, weighed down by mounting recession fears.
Cramer said the market’s recent downturn is the perfect setup for a Santa Claus rally, which describes the tendency for US stocks to rise towards the end of the year and into the new year. For Williams, according to Cramer, it’s a matter of when, not if shares will rise.
To explain Williams’ analysis, he examined the daily chart of S&P 500 futures from November 2021 to January 2022.
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The blue line below is Williams’ seasonal forecast and suggests that the best buying opportunities will come in mid to late December, with the Santa Claus rally tending to last through the January 10th end of the year according to the forecast.
Cramer then compared those results to the data shown on the daily chart of S&P futures from September of this year to present.
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The chart suggests the market has just entered the “seasonal sweet spot,” Cramer said. He added that Thursday’s trading session is the ideal time to buy ahead of a possible rally, according to Williams.
“I know it’s hard to believe the market is ready to go, but that’s always the case with Larry’s calls. While it’s possible this year will be different, historically it was a really bad strategy to bet against him,” he said.
For more analysis, see Cramer’s full statement below.
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