A year ago Tuesday, the market experienced what Jim Cramer called a crescendo bottom, and that was followed by a remarkable year-long recovery. Cramer told his Mad Money viewers there are many things about the stock market this year that look very much the same.
What's a crescendo bottom? That's the day when all of the bulls give up and everyone starts selling. In 2009, the day came when the sellers outnumbered the buyers by a ratio of nine to one. Cramer said he gauges crescendos by the number of "accidental" high-yielding dividend stocks. Any stock whose share price falls enough to cause their yield to surge past 4% qualifies, he said.
The most important thing is to be able to recognize the crescendo -- but that's not easy.
A year ago, the major market averages looked horrible as the first stimulus bill seemingly had stalled in Washington, D.C. But underneath the averages, the "great reshuffling" was occurring, with investors snapping up the stay-at-home stocks like Zoom Video (ZM) . "If you panicked a year ago, you blew it," Cramer said.
The same thing is occurring today, Cramer added, with a subtle changing of the guard occurring, as investors sell growth stocks and technology in favor of the cyclicals and financials that thrive with rising interest rates.
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Executive Decision: AquaBounty Technologies
Is it finally safe to speculate again? Cramer found out in his first "Executive Decision" segment, when he spoke with Sylvia Wulf, CEO of AquaBounty Technologies (AQB) , the Indiana-based food company that's pioneering genetically modified salmon.
Wulf said that it's taken a lot of hard work and persistence, but after 30 years of building and testing, AquaBounty has received FDA approval to begin selling its salmon.
When asked about their genetically-modified products, Wulf admitted that they haven't done a very good job explaining the benefits of GMO products. GMOs allow AquaBounty to make high-quality protein products that are affordable and accessible. Using their technology, salmon can be raised on less land, with less water and be far closer to their end markets, making them fresher thanks to a dramatically more efficient supply chain.
Wulf said she was very pleased when ARK Invest took a 12% stake in AquaBounty, noting that ARK sees the value in how they can help feed the world in a more sustainable manner.
Executive Decision: Eclipse Ventures
For his second "Executive Decision" segment, Cramer also spoke with Lior Susan, founding partner of Eclipse Ventures, the venture capitalists behind Owlet Baby Care. Owlet is pioneering the connected baby nursery with their Smart Sock, which provides remote heart rate, pulse oxygen and temperature readings. Owlet will soon be coming public via a special purpose acquisition company, or SPAC.
Susan said technology has paved the way for parents to finally have the peace of mind that their baby is alive and well while sleeping in the next room. Owlet is bringing the connected nursery into reality and it's a very exciting time for the company and the thousands of parents who are relying on their products every evening.
When asked about their decision to come public via SPAC rather than traditional IPO, Susan explained that he's confident that Owlet will be able to stand above the many SPACs that are simply hype. Owlet has strong fundamentals and great growth, both of which speak for themselves.
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Off the Charts
In the "Off The Charts" segment, Cramer checked in with colleague Larry Williams for a read on where some of your favorite retail stocks are likely headed next.
Williams used daily charts to examine the seasonal patterns of a handful of retailers, noting that they all have powerful Easter rallies historically. For example, if you had bought shares of Costco (COST) on March 26 and held it for three days, you would have made money in that calendar period in all of the past 34 years.
Williams saw a similar pattern in Amazon (AMZN) , where buying the stock going into Easter would have netted gains in every year for the past 23 years. Buying Walmart (WMT) the day before Easter and holding it five days later has also been a winning bet.
Finally, Williams looked at a newcomer, Shopify (SHOP) , noting that while this stock only has a few years of data, the seasonal pattern is already very clear.
Time for COVID clarity
In his No-Huddle Offense segment, Cramer sounded off on our past year trying to deal with COVID. He said while we're finally starting to do a better job getting people vaccinated, just about all of the other rules, regulations and plans surrounding this pandemic have been downright nonsensical.
Today we learned that Regeneron's (REGN) cocktail for treating high-risk patients has proven to be highly effective in reducing hospitalizations and death. But will this drug ever see the light of day? Or will it get lost in the red tape, relegated to a government stockpile?
Then there is the mishmash of federal, state and local regulations the require temperature checks, masks, social distancing, and a host of other requirements... or not. Those who are fully vaccinated are seemingly subject to the same rules, providing a counterincentive to getting the shot.
The mixed messages extend to the business world as well, where some restaurants can open while others can't. Cruises can't require vaccinations, but people can pack casinos with almost no rules at all. We could have nationwide testing, but we don't.
What does all of this mean for investors? Cramer said it means COVID will likely be around for a lot longer than we hope.
Here's what Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Tuesday evening:
Foley Trasimene Acquisition (BFT) : "There are so many of these things you can't keep track of them. It's too hard for investors."
Peloton (PTON) : "They have done acquisitions in an attempt to diversify, but they've had a big run. I'm moving on."
Tellurian (TELL) : "I'm a big fan. This is a terrific speculative stock."
Palantir Technologies (PLTR) : "I think this is a great software company, but it's also a black box and we don't know what they're doing. "
G1 Therapeutics (GTHX) : "This is a very speculative stock. As long as you understand that, you're OK."
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At the time of publication, Cramer's Action Alerts PLUS had a position in COST, AMZN.