Unhealthy Sector Sees Some Healthy Investment

Guidant (GDT - commentary - Cramer's Take), Zimmer (ZMH - commentary - Cramer's Take) and Boston Scientific (BSX - commentary - Cramer's Take) have made a mockery of Pfizer (PFE - commentary - Cramer's Take), Johnson & Johnson (JNJ - commentary - Cramer's Take) and Merck (MRK - commentary - Cramer's Take).

No, not the companies. The stocks! But that's what happens when you have dedicated health-care and growth-money pools searching out values.

Let me explain. Billions and billions of dollars are run in sectors. If you are a growth-stock manager, you accept that you have to have some exposure to the growth business of health care.

But you are also a reader of the front pages, which say that drugs are going to be imported from Canada or price-controlled or patent-challenged. So you say, you know what, I am selling my Pfizer, JNJ and Merck. However, I have to keep the money in that cohort: hence the endless runs in Guidant, Zimmer and Boston Scientific. (And to a lesser extent, Medtronic (MDT - commentary - Cramer's Take) and Kensey Nash (KNSY - commentary - Cramer's Take) and a couple of other ne'er-do-wells.)

I am sure that those of you who look at the strength in the trio have to be saying, "This is completely wacky, how in heck can these stocks go up every day?"

As is often the case, the strength has less to do with things that are happening at the companies and more to do with things that are happening with the buyers and sellers of stocks.

Supply and demand; nothing more, nothing less.

Random musings: China doing more business? Revelatory? Not if you have been watching Overseas Shipholding (OSG - commentary - Cramer's Take); what a rocket that stock's been.

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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. At the time of publication, Cramer was long Pfizer. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."