China Is Driving the Action on Your Screen

Big bad event passed? Things not as bad as we think? To me, we are seeing everyone in the world betting that Obama will totally have it right but more important that China already has it right. China is the driver of your screen. That market roared last night, and everything that I am hearing out of China is that it is putting its budget to work fast and putting more money into government workers' pockets right now through generous raises. Remember, lots of people work for the government in a communist society.

I made the judgment last night that it isn't U.S. pork driving this economy, it is moo shu pork, meaning that China is really taking us somewhere.

Agriculture is China: Demand is rocking, helped by Bunge's (BG - commentary - Cramer's Take) forecast and a drought in Argentina that is taking out supply. China, though, needs more food. Minerals are China: Look at the Bulk Freight Index. Steels are China: power plants and rails. These are all obvious to people, because there is nothing in the stimulus bill that will move the needle for these. But China can help clean up inventory that has been laying on everything.

Machinery is China: not us. I don't see a single Caterpillar (CAT - commentary - Cramer's Take) order coming from this stimulus plan. Not one. There is enough in the pipe now to meet that demand. But not the demand from China. Watch this stock. It had the worst chart in the world, and every short has been leaning on it, but now the chart is changing.

Same with the rails. They will be able to maintain their rates if China demand kicks in. They have come down too much, and the hedge funds are done, so let's move to the buy side off of China.

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Jim Cramer is co-founder and chairman 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. To order Cramer's newest book -- "Jim Cramer's Stay Mad for Life: Get Rich, Stay Rich (Make Your Kids Even Richer)," click here. Click here to order "Mad Money: Watch TV, Get Rich," click here to order "Real Money: Sane Investing in an Insane World," click here to get "You Got Screwed!" and click here for Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he appreciates your feedback and invites you to send comments by clicking here.

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