Continuing our countdown of the top 10 bull markets (read Part 1)...
Sixth? Home and home-related. I know it's been disliked since $12, but my favorite homebuilder because of its incredibly good California holdings, KB Home (KBH) - Get KB Home Report , shows no signs of quitting. It's leading Toll (TOL) - Get Toll Brothers, Inc. Report , Lennar (LEN) - Get Lennar Corporation Class A Report , Horton (DHI) - Get D.R. Horton, Inc. Report and Pulte (PHM) - Get PulteGroup, Inc. Report even as this group is supposed to be selling off into a pending rate hike. At least it always has before.
Perhaps because, as the brilliant Home Depot (HD) - Get Home Depot, Inc. Report CFO Carole Tome mentioned on her conference call, a quarter point is $40 more dollars a month -- hardly enough to quell a purchase of a $700,000 Toll Brothers home. I think you can only delay the purchase of a home for so long, and the delays have now been a decade long.
Anything that makes a home more valuable, anything that can be capitalized and not expensed, so to speak, has had downfield running all the way, led by Stanley Black & Decker (SWK) - Get Stanley Black & Decker, Inc. Report but including Masco (MAS) - Get Masco Corporation Report and Sherwin Williams (SHW) - Get Sherwin-Williams Company Report look incredibly strong. But their moves pale in comparison to those leaps of Home Depot and Lowe's (LOW) - Get Lowe's Companies, Inc. Report . You know a theme is powerful when both of those companies put up phenomenal earnings. The tide seems so high, that you almost expect Sears Holdings (SHLD) to participate. My thinking? If it isn't participating now, then it ain't ever going to do so.
Seventh: United Parcel Service (UPS) - Get United Parcel Service, Inc. Class B Report doesn't represent its group well. I find the freight forwarders and logistics and truckers all doing so well here, with CH Robinson Worldwide (CHRW) - Get C.H. Robinson Worldwide, Inc. Report , XPO Logistics (XPO) - Get XPO Logistics, Inc. Report and Expeditors (EXPD) - Get Expeditors International of Washington, Inc. Report being the standouts. But you could throw darts at this group, and as long as you don't hit UPS, you are in clover.
The eighth bull? The airlines. Maybe Warren Buffett started the party, but this group comes in only for seconds, it seems, and then it is off to the races again for whatever reason, the most recent being the deregulation against fare transparency that President Trump instituted Friday. Southwest (LUV) - Get Southwest Airlines Co. Report remains the favorite.
Ninth? Let's call it travel and leisure, and let's include Carnival (CCL) - Get Carnival Corporation Report , Royal Caribbean (RCL) - Get Royal Caribbean Group Report , Priceline (PCLN) and Disney (DIS) - Get Walt Disney Company Report , although the latter's still well off its high. These are part of the experiential economy, the one where we Snap and Tweet and Instagram our way through joyous times and insist on sharing them with people who are less fortunate at that moment than we are.
Finally, because of the sharp decline at the longer end and a Kraft Heinz (KHC) - Get Kraft Heinz Company Report that is on the prowl, we've got a remarkable run in some of the old bond market equivalent and consumer product companies, like Clorox (CLX) - Get Clorox Company Report , Kimberly Clark (KMB) - Get Kimberly-Clark Corporation Report , PepsiCo (PEP) - Get PepsiCo, Inc. Report and Colgate (CL) - Get Colgate-Palmolive Company Report . Throw in the non-takeoverable Procter & Gamble (PG) - Get Procter & Gamble Company Report courtesy of pressure from Nelson Peltz, and you have a decent sized group. Oh, and if you really want to stretch the bounds? How about the consumer product company king, Apple, the largest company on earth and one that still sports no more than a 14x multiple?
What's conspicuously absent from the list? How about the oils, which are almost all rolling over save Pioneer PXD. We have been buying them for the trust as a counterplay to the rally. The hallmark of this market has been to buy the out-of-favor and don't get down about it. The rotation is coming. The retailers are so sickly that they redefine pain, as do the supermarkets, with standouts like Fossil (FOSL) - Get Fossil Group, Inc. Report , L Brands (LB) - Get L Brands, Inc. Report , GameStop (GME) - Get GameStop Corp. Class A Report , Supervalu (SVU) , Kroger (KR) - Get Kroger Co. Report and Whole Foods (WFM) . Amazon's (AMZN) - Get Amazon.com, Inc. Report chart tells you where the money's going.
Finally, there's the higher-yielding stocks that don't seem to be able to back their yields with the goods -- here, I am thinking Frontier (FTR) - Get Frontier Communications Corp. Report and Centurylink (CTL) - Get CenturyLink, Inc. Report (as currently figured) but also some of the higher yielding real estate investment trusts that are linked to retail, which has become the kiss of death in this market. I don't know if it's worth it to be patient and wait for the next rotational bus to come around. It just might take too long, and it could be from a much lower level to bounce you out of there.
Yep, 10 powerful bull markets with no sign of flagging, and that's just the most visible ones. There are plenty of minis and one-offs in this tape. Let these serve as a reminder for when we have our next down days. These are the places you want to be.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long KHC and PEP.