Cramer wants to know what must happen for Home Depot to keep its 25% monthlong rally going.
Nothing must happen. That's the beauty of a chart. It doesn't need your permission or your reasons.
The summary asks whether this is the turning point or just another head fake. Those are the only two options. Every chart in history is either a turning point or a head fake. Tell me something about a chart that isn't true of every chart.
Notice the word "patient." Patient Home Depot investors like us. Patience is what you call losing money slowly while wearing a nice vest.
Here's what I know. Home Depot sells lumber, drywall, and a 40-pound bag of regret for your garage. A stock that sells those things goes up 25% in a month, and suddenly everyone is a contractor. They've never hung a door. They've hung a thesis.
The rally needs support. Technically, support means buyers show up at a lower price. Retail traders will provide this support right after they sell at the lower price, so the timing is flexible.
Cramer will tell you what must happen. Earnings. Rates. The consumer. The housing market. Each is a small furnace into which he feeds your attention. None of them is on the chart. The chart has price and volume. The chart has never once asked about mortgage rates.
If the rally continues, Cramer was patient and wise. If it fades, Cramer was patient and the market was irrational. This is a very comfortable job.
I respect the 25%. It's a big number, and big numbers make people feel like they own a piece of the orange apron.
You don't. You own a ticker symbol and a feeling, and the feeling expires first.
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