The Dragon Roars Louder

It's another celebration of China day. There's a huge drought in China and food needs to be imported rapidly, which is causing grain prices worldwide to fly and leads to a rally in Mosaic (MOS - commentary - Cramer's Take), Agrium (AGU - commentary - Cramer's Take) and Monsanto (MON - commentary - Cramer's Take). (By the way. great comments from Bob Marcin in Columnist Conversation about Chinese New Year spending.)

We have numerous reports of the Chinese ordering iron ore, copper, nickel and of course steel. Is even aluminum -- Alcoa (AA - commentary - Cramer's Take) -- good for a trade? When you see U.S. Steel (X - commentary - Cramer's Take) up huge after a gigantic hit job by Goldman Sachs (GS - commentary - Cramer's Take), you've got real strength. Same with Freeport McMoRan (FCX - commentary - Cramer's Take), which has now almost doubled from the bottom. You can always judge a stock by how it reacts to a downgrade -- U.S. Steel is on fire and Freeport has been downgraded repeatedly.

Oil's bottom, also China-oriented, is percolating throughout the system and producing breakouts all over the place -- huge moves in Schlumberger (SLB - commentary - Cramer's Take) since the bottom, as well as Baker Hughes (BHI - commentary - Cramer's Take) and Transocean (RIG - commentary - Cramer's Take). It is incredible how strong this market is and I have to believe that the technicians have given this one such a blessing that, short term, there's more ahead. That then translates to hedge-fund faves like Jacobs Engineering (JEC - commentary - Cramer's Take) and Foster-Wheeler (FWLT - commentary - Cramer's Take). With hedge funds no longer selling assets, this move has legs.

It is true that the Baltic Dry Freight Index, while doubling from the bottom, is big, but the 85% decline from the top is bigger. And China, while up big, was down gigantically last year.

Still, it is a remarkable move. I want to distinguish it from two other moves: the hope move in the financials based on Geithner love; and the tech move based on Amazon (AMZN - commentary - Cramer's Take), Google (GOOG - commentary - Cramer's Take), Apple (AAPL - commentary - Cramer's Take) and Research In Motion (RIMM - commentary - Cramer's Take) -- those stocks got oversold and the hedge funds and tech mutual funds are all over them.

At the time of publication, Cramer was long Freeport McMoRan, Foster-Wheeler and Goldman Sachs

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