Jim Cramer -- 'Old Tech,' FANG Stocks Will Lead Tech Rally

We need a rally in tech stocks to get the market back in shape, Cramer says.

Author:: Bret Kenwell
Publish date:: May 24, 2016 11:04 AM EDT

The market will be in better shape if there is a decent rally in tech sector stocks, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment Tuesday.

The key to a more powerful rally will come if we get "old tech" stocks to rally alongside "new tech" stocks, he added. He pointed to the positive coverage on Microsoft (MSFT) - Get Report from the analysts at Cowen. They also upgraded Western Digital (WDC) - Get Report to outperform from market perform and assigned a $50 price target. The company has an important investor meeting Thursday, Cramer noted.

Crmer reminded investors how well Applied Materials (AMAT) - Get Report did in its most recent earnings and in China. There's a lot of good news in tech, so let's see if it "percolates," Cramer said.

Keep an eye on old tech stocks, along with the FANG stocks -- Facebook (FB) - Get Report , Amazon (AMZN) - Get Report , Netflix (NFLX) - Get Report and the former Google, now Alphabet (GOOGL) - Get Report , Cramer concluded.