The charts show that investors should bet on the workhorses of the Dow Jones Industrial Average, says Jim Cramer.

CNBC’s Jim Cramer on Friday advised investors to stay away from Nasdaq Composite stocks and instead bet on stocks listed on the Dow Jones Industrial Average.

“Even though technology started the new year off strong and it was pretty darn good today, the charts, as Larry Williams has interpreted, say you need to be a little wary of Nasdaq show horses and bet on Dow work horses,” he said. .

Shares rose on Friday to close a positive week for all three major indices. The Nasdaq is up 11% this year as investors bet on a less aggressive Fed rate hike.

To explain Williams’ analysis, Cramer studied the November 2021 Nasdaq-100 daily chart.

While some technicals see it as a bullish sign that the index has broken above its 200-day moving average over the past two days, Williams notes that Kramer said the Nasdaq-100 is back down after breaking levels in the past.

He then looked at the daily Dow Jones data for February 2022.

Unlike the Nasdaq-100, which Williams believes is a “show horse” index because of the high interest in it, Cramer said the Dow is more representative of Main Street.

He added that the blue-chip index broke above its 200-day moving average back in November and has remained above it ever since.

“Williams finds this chart more attractive,” he said.

For a more detailed analysis, see Cramer’s full explanation below.