CNBC’s Jim Cramer on Monday said that the market could have a strong rally through late August, pointing to analysis from legendary market technician Larry Williams.
“The last time we spoke to him about the broader averages in late May, he predicted that after some choppy trading the market would have a strong rally through late August. Right now, what he’s seeing in the futures confirms that thesis,” he said.
To explain Williams’ analysis, the “Mad Money” host first noted that Williams believes commercial hedgers in stock futures, which are composed mainly of banks, mutual funds and governments, tend to have the best understanding of their industry compared to professional money managers and run-of-the-mill investors.
“When these guys get very bullish in their positioning … it’s often a great buying opportunity,” he said.
“Especially at important bottoms, Williams points out that…