The cyclical rally's remarkable. We have Cleveland Cliffs
(CLF)
and U.S. Steel
(X)
running, joining Freeport-McMoRan
(FCX)
, which is being linked to a takeover bid from BHP
(BHP)
or Rio Tinto
(RTP)
. Emerson
(EMR)
, Eaton
(ETN)
, Parker
(PH)
. Reliance
(RS)
. AK Steel
(AKS)
-- remember when AK was supposed to be acquired for $30 and change? Ha!
These companies should not be going up when Clorox
(CLX)
and Pepsi
(PEP)
and P&G
(PG)
and Coca-Cola
(KO)
and UnitedHealth Group
(UNH)
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)
and Whirlpool
(WHR)
. 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.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.
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