The Drugs Are a Sweet Tell

This once-loved group can rally.
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The drugs are certainly a sweet tell. I don't know which is more amazing, that this once-loved group can rally or that

Compaq

(CPQ)

is up all day. Makes a guy want to go out and buy some

AMD

(AMD) - Get Report

! OK, maybe not that bullish.

Some students of the market might be bummed that the cyclical rally has taken a walk today, but we weren't going anywhere without these bonds, and my stocks that indicate the bonds are OK ahead of payrolls as they continue to flash green. (Drugs and slow-mo stocks.)

Take

Anheuser-Busch

(BUD) - Get Report

. At one point today this stock was on the critical list. The stock tends to trade with the bonds, meaning people will pay more for its earnings with rates going down than up. Anheuser crescendoed down at 67 and then never looked back. That was a tell to me that bonds are bottoming. (Who knows, maybe

Philip Morris

(MO) - Get Report

is bringing Dick back?)

GE

(GE) - Get Report

-- again, an interest-rate-sensitive stock -- acts better today. Another good tell.

Sure, I would feel better if this rally were occurring at 3:45 instead of 3:25 -- less time for profit-taking. But considering how horrendo everything looked in the morning, not bad, not bad. Even as I write, big buyers coming into

Warner-Lambert

(WLA)

. Nice to see the thesis playing out.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At the time of publication the fund was long Philip Morris, though positions can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending an email to

letters@thestreet.com.