Jim Cramer's Stop Trading! Hungry Caterpillar

Tuesday's rally in cyclical stocks and classical recession-proof names constitutes "an amazing confluence of great things," Jim Cramer said Tuesday on CNBC's "Stop Trading!" segment.

Cramer said the sharp jumps in economically sensitive manufacturing shops such as Black & Decker (BDK Quote - Cramer on BDK - Stock Picks), Caterpillar (CAT Quote - Cramer on CAT - Stock Picks) and Illinois Tool Works (ITW Quote - Cramer on ITW - Stock Picks) are impressive, given that these stocks were given up for dead two months ago when the companies warned on their earnings. Even more stunning, also rallying are telcos AT&T (T Quote - Cramer on T - Stock Picks) and Verizon (VZ Quote - Cramer on VZ - Stock Picks) -- the very stocks investors typically flee to in case of recession, Cramer said.

Cramer also applauded the gains in lenders First Horizon (FHN Quote - Cramer on FHN - Stock Picks) and Countrywide (CFC Quote - Cramer on CFC - Stock Picks), saying they show that worries about subprime lending defaults are overblown.

"Shorts like to think Angelo fell off the turnip truck," Cramer said of Countrywide chief Angelo Mozilo. Cramer went on to describe Mozilo as "the most sophisticated modeler" of financial risk in the lending business.

Cramer said what's most impressive about Tuesday's strong gains in these names is that they're happening ahead of a Fed meeting tomorrow and a closely watched jobs number Friday. "It's hard not to be bullish," Cramer said.

Cramer also said he'd rather own oil service giants Transocean (RIG Quote - Cramer on RIG - Stock Picks) and Schlumberger (SLB Quote - Cramer on SLB - Stock Picks) than any of the natural gas stocks, even Grey Wolf (GW Quote - Cramer on GW - Stock Picks).