You are using an older browser version. Please use a supported version for the best MSN experience.

Cramer sees signs that Apple's stock is close to breaking out

CNBC logo CNBC 5/01/2017 Abigail Stevenson

With the Trump rally finally taking a breather on Thursday, Jim Cramer said the FANG rally is back on.

FANG is Cramer's acronym to represent the leaders of technology growth in the market. It stands for Facebook (FB), Amazon (AMZN), Netflix (NFLX) and Google, now Alphabet. (GOOGL)

The good news about a FANG rally is that it even boosted Apple (AAPL) stock, which just revealed that its App Store developers brought in $20 billion in 2016, up 40 percent year-over-year.

The number Cramer has been most excited about for Apple is its service revenue, which could be growing faster than expected.

"The bears on Apple are losing patience. I think the stock is close to breaking out," the "Mad Money" host said. 

Cramer also saw signs that Republican leaders may try to slow President-elect Donald Trump's agenda when he tried to scrap the Affordable Care Act, which could make the economy grow faster, but not stocks.

The Senate hearings about cyber espionage also indicated to Cramer that some Senators are not afraid to defy Trump.

"If Trump's own party is going to make trouble for the agenda that brought us oh-so-close to Dow (.DJI) 20,000, then we're going to have a sell-off," Cramer said.

Wall Street was also rocked by news of Macy's (M) and Kohl's (KSS), which caused most retail stocks to be crushed initially. As the smoke cleared, investors recognized that it wasn't just consumers not spending money, but they just aren't going to the mall. This sent Amazon up 3 percent Thursday.

So, with the notion that the economy could be slowing and Trump wasn't able to lift stocks, investors will go back to buying the stocks of companies that do well in a slowdown and don't need Trump's help. That meant FANG was back in style.

"This is the pause that I have been expecting, it's just that rather than unleashing a tsunami of selling, it merely caused money to flow from Trump stocks to not Trump stocks," Cramer said.  

More from CNBC

image beaconimage beaconimage beacon