Cyclicals Yoked to Defensives? Enjoy It

The cyclical rally's remarkable. We have Cleveland Cliffs (CLF - commentary - Cramer's Take) and U.S. Steel (X - commentary - Cramer's Take) running, joining Freeport-McMoRan (FCX - commentary - Cramer's Take), which is being linked to a takeover bid from BHP (BHP - commentary - Cramer's Take) or Rio Tinto (RTP - commentary - Cramer's Take). Emerson (EMR - commentary - Cramer's Take), Eaton (ETN - commentary - Cramer's Take), Parker (PH - commentary - Cramer's Take). Reliance (RS - commentary - Cramer's Take). AK Steel (AKS - commentary - Cramer's Take) -- remember when AK was supposed to be acquired for $30 and change? Ha!

These companies should not be going up when Clorox (CLX - commentary - Cramer's Take) and Pepsi (PEP - commentary - Cramer's Take) and P&G (PG - commentary - Cramer's Take) and Coca-Cola (KO - commentary - Cramer's Take) and UnitedHealth Group (UNH - commentary - Cramer's Take) rally strong.

What gives? There are two camps in play: The recession camp is placing bets and the growth camp is placing bets.

Of course, someone will be wrong after the Fed meeting but this cyclical rally is truly a monster given the softness in real estate.

Makes me want to go out and buy Black & Decker (BDK - commentary - Cramer's Take) and Whirlpool (WHR - commentary - Cramer's Take). Well, maybe not that much.

I don't know if people realize how rare it is that both sectors are going higher. As long as they do, you've got a terrific market. Remember, one camp loses, but if we get a half point, the loss from the Clorox/Coke contingent won't be that bad and the cyclicals will go through the roof!

At the time of publication, Cramer was long Freeport-McMoRan and UnitedHealth Group.

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