Tech Remains the Best Place to Be

You figured it had to happen sometime. It's been simmering underneath the crosscurrents of mortgage hell.

It is the tech rally.

The components? Why, it is the components: Western Digital (WDC - commentary - Cramer's Take), Intel (INTC - commentary - Cramer's Take) and Seagate (STX - commentary - Cramer's Take).

They don't strut unless demand is strong. Demand is strong because of strong sales of PCs, chiefly by Hewlett-Packard (HPQ - commentary - Cramer's Take). We know from Mark Hurd's appearance on "Mad Money" last week that things are smoking.

We got a terrific reiteration of strength today from Ericsson (ERIC - commentary - Cramer's Take), an important part of the cell-phone food chain as the big telcos worldwide are spending to upgrade their networks. We know that Nokia's (NOK - commentary - Cramer's Take) strong every day, so the bullishness is seeping through all parts of that important tech driver.

We catch an update from VMware (VMW - commentary - Cramer's Take) today at its big West Coast conference. John Chambers keynotes and you know he is bullish.

Apple (AAPL - commentary - Cramer's Take) helped kick things off Monday. Selling a million phones at a high price isn't shoddy, but the rest of the business is really the driver, and it's quite strong. Then there is Research In Motion (RIMM - commentary - Cramer's Take), which is gaining from the apparent collapse of Palm (PALM - commentary - Cramer's Take).

Monday showed a strange bearish complacency. People yawned when Intel said things are better than expected. Yawning was wrong, as we will find out today. They should have been buying, not yawning.

Any time really great news comes out and the market ignores it, you are later going to get a reaction, just like you would get a delayed reaction to bad news if no one cared initially.

That means tech remains the best place to be for the moment.

Random musings: Still marveling at the unraveling of Legg Mason (LM - commentary - Cramer's Take), which is a premier franchise.

At the time of publication, Cramer was long Hewlett-Packard.

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Jim 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. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here.

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