NEW YORK (TheStreet) -- "Enjoy the reprieve," an upbeat Jim Cramer told his "Mad Money" TV show viewers on Wednesday. "This time, it might actually last for a week or two," he continued, as he opined on today's seemingly illogical market action.
Cramer said its rare to find a day when defensive, recession stocks like Merck (MRK), HJ Heinz (HNZ) and Colgate-Palmolive (CL) rally at the same time as cyclical stocks like Chevron (CVX), 3M (MMM) and Boeing (BA), but that's exactly what happened today.What's the reason? Cramer said the recession names continue to trend higher every day there is no definitive resolution in Europe. He said the thinking is that a slowdown there will eventually spell a slowdown for the U.S. Meanwhile, the cyclical stocks rallied on a research report from JPMorgan Chase (JPM), which said that China may be done raising interest rates, one of the 10 things Cramer said was needed for a sustainable rally. Cramer said this seemingly benign report holds the key for many stocks, as China is the growth engine for many industries. He said stocks like Caterpillar (CAT) and Cummins (CMI), two stocks which he owns for his charitable trust, Action Alerts PLUS, both rely on a healthy Chinese economy, as do other less obvious names like Coach (COH), Starbucks (SBUX) and Yum! Brands (YUM). Cramer said the positive Chinese news has also turned his position on tech stocks, which he now feels are a buy, a full 10 days ahead of when he would normally recommend tech based on their traditional seasonal weakness. Also on Cramer's buy list, Wynn Resorts (WYNN), levered to the Chinese Maccau region, along with coal players like Cliffs Natural Resources (CLF) and Peabody Energy (BTU).
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV