Positive Action Is Spreading

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The extrapolations -- the pin action -- today are amazing. Let's go through them. First is oil. As oil goes up to the high $40s, you can get a lot of money flooding back to this area, especially because the lead story in the business section of The New York Times is "Wondering if Crude Could Fall Even More."

When you layer on the incredibly bullish conference run by Chevron (CVX - commentary - Cramer's Take), with its massive replenishment call of 148%, people are extrapolating the commodity prices and CVX. That's a big deal. It also spread to infrastructure, where we are getting an increased likelihood that big projects that have threatened to be held could get back on track. Foster Wheeler (FWLT - commentary - Cramer's Take) is the prime example of deals on hold killing a stock. It can go higher with the rest of them.

Next is tech: Last night, Texas Instruments (TXN - commentary - Cramer's Take) had some positive things to say about the inventories being low and some improvement in 3G demand. That's easily extrapolated to just about every semi and handheld business from Research In Motion (RIMM - commentary - Cramer's Take) to Analog Devices (ADI - commentary - Cramer's Take) to Apple (AAPL - commentary - Cramer's Take) and Skyworks Solutions (SWKS - commentary - Cramer's Take).

Finally, there are the banks. First, Bernanke's ready to show forbearance on the banks by going "mark-to-market lite," meaning that there should be an adjustment in valuation against the lowest common denominator of real estate. That moves every financial and the faux financials like General Electric (GE - commentary - Cramer's Take). They are all battling strict mark-to-market, and if we got mark-to-market lite and forbearance, then the stocks are incredibly cheap and ready to roll.

Then if you add in the Citigroup (C - commentary - Cramer's Take) numbers, the ones that show the quarter the best in a couple of years, you then have a remarkable extrapolation: If it is good for Citigroup, how great could it be for its brokerage partner, Morgan Stanley (MS - commentary - Cramer's Take)? How about how it could be for Wells Fargo (WFC - commentary - Cramer's Take), which said things are good? How about Goldman Sachs (GS - commentary - Cramer's Take)? It must be on fire.

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Jim Cramer is a featured commentator for CNBC, which is owned by General Electric; as part of his contract, Cramer holds restricted shares in GE.

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