Stop Trading! This Rally's for Real

Tech is particularly hot.
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Tech buyers don't have their heads in the sand even as the bond market signals tough times ahead, Jim Cramer said Friday on CNBC's "Stop Trading!" segment.

"I don't think people are being foolish," he said. "They're not nearly as focused on the bond market as the media critics would have them. Somehow they're not scared. ... It's a reversion to the days when we had growth and we paid for it."

All areas of tech are getting a boost, he said, from

Intel

(INTC) - Get Report

to

Cisco

(CSCO) - Get Report

to

Ciena

(CIEN) - Get Report

to

Hewlett-Packard

(HPQ) - Get Report

. "The buyers are not waiting. They want in. ... I'm seeing Intel act like the Intel of old."

One area Cramer cited was the decreasing prices of components. "You can make a case that

Dell

(DELL) - Get Report

and

IBM

(IBM) - Get Report

, that use the components, are going to have margin expansion."

The pattern in tech is one that's seen across many sectors in the economy.

Union Pacific

(UNP) - Get Report

, for example, cut its estimates but still rose. "It cut its numbers, and the stock goes higher. This is the power of the rally."

Union Pacific is benefiting from a lack of competition among railroads. "It's a long-term-growth story in pricing power. Railroads have it, and truckers don't."

Cramer also cited

Home Depot

(HD) - Get Report

as a stock that's just getting rolling. He said that while some see its move higher as the result of a stock buyback, the move is based in real buying. "You can't walk a stock up," he said of a company buying back stock. "You follow it up."

At the time of publication, Cramer was long HPQ and UNP.

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

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