The weekly chart confirmed this theory, as the FXE displayed a bearish channel pattern for the euro but also a wedge pattern that the index seems to be poised to break out of. Collins said the stochastics are also showing an extreme oversold condition, one that could result in a 6% to 13% bounce in the currency.
Cramer said with so many investors fearing the worst for the euro, Collins' contrarian view needs to be on investors' radar. He called right now a "buyable moment" for the euro, one that if Collins is right, could see an 18% move to the upside.
In the "Executive Decision" segment, Cramer spoke with Steve Sadove, chairman and CEO of Saks (SKS), the luxury retailer whose shares rose 6% near their 52-week highs on a surprise 4.7% increase in same-store sales. Shares of Saks are up 22% since Cramer last recommended the stock on Dec 12.
Sadove said that Saks is in "acceleration mode," as many of its stores and segments are performing well. He said the company's New York store is seeing some headwinds now that European tourism is lagging, but overall he doesn't see New York as a negative.Specifically, Sadove highlighted Saks' eighth-floor shoe department as one standout, calling the floor the second most profitable at Saks' New York flagship location. Jewelry is also strong, he noted, as is women's apparel. Other highlights for the company are its new all-robotic distribution facility in Tennessee, which will help speed along both in-store and online orders for the company. When asked why the company no longer offers monthly guidance, Sadove explained that providing monthly same-store sales is only half the story and isn't accurate without also including the gross margin component. Thus Saks decided to only offer quarterly guidance, which includes both numbers. Finally, when asked about store closings, Sadove said that Saks has already closed eight underperforming locations and will be announcing a few more in the future. Saks is opening new locations, however, as it responds to a shifting market.
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