Looking at a daily chart of the Powershares QQQ ( QQQ) Collins noted the Nasdaq appears to be in a topping out process, with the stochastics -- a momentum indicator -- once again showing a double-dip pattern, similar to those in December and February, both of which resulted in a 3% to 5% pullback in the average. Collins thinks that with the Nasdaq trading in such a tight range, it may be poised to lose its floor of support and slide significantly lower. The weekly chart painted a similar picture, noted Collins, with another rising wedge pattern coupled with the relative strength indicator, or RSI, signaling a bearish divergence of lower highs and lower lows. Cramer said Collins' analysis is worrisome because it shows the money that's been flowing out of Apple may no longer be flowing into the Nasdaq at large, which means the index may not be able to hold current levels for much longer. "I don't like it when the chart is against me," Cramer concluded.
Three Cancer Fighters
For the next installment in his series of speculative biotech stocks, Cramer highlighted ImmunoGen ( IMGN), Seattle Genetics ( SGEN) and Onyx Pharmaceuticals ( ONXX), three companies leading the fight against cancer. Cramer said shares of ImmunoGen have doubled since he first recommended it in November 2009, but this $1.3 billion company still has a lot of room to run. The company's targeted cancer therapies are far more potent than old-line treatments. While recent drug approvals may benefit ImmunoGen's many partners more than itself, Cramer said the approvals validate the technology and will translate into big wins for the company's many other drugs in its pipeline. He advised waiting for a pullback in the stock before buying in ahead of its April 12 analyst day. Shares of Seattle Genetics are up 50% since Cramer got behind the stock in June 2012 and, like InnumoGen, this company also makes targeted cancer therapies. While Seattle Genetics may only have one drug on the market, it has 20 drugs in clinical trials, including four in late-stage trials. With its host of partnerships, Cramer said, Seattle Genetics will receive over $3 billion in milestone payments over the next few years to aid in the continuation of its development.