"Today, out of nowhere, industrial stocks are going crazy," when these companies are supposed to be performing poorly, Jim Cramer said on his
"RealMoney" radio show Monday.
As a result of doing his homework, Cramer said one of the things he knows "is that there is a boom going on in the commercial-construction sector."
Three examples of strength in this area are
( JLG), which just got a bid today;
, he said.
Upon further homework, Cramer said people will discover that these companies are not housing-related, but are big industrials, which is a strong area right now.
These companies are "taking off, even though pieces of their businesses are connected with autos." Industrials are a way to make money in the market, he said.
"I do expect a down day this week because it's options expiration," Cramer added. He said he wants people to be aware because the economy is very strong -- so strong in fact, that he is worried interest rates might go up.
"The recession camp's been dealt such a severe blow in the last few weeks that you have to wonder whether we can actually go back to the May highs in the industrials," Cramer said.
For the last three months, people have been on "recession watch" as they thought gasoline was going higher and higher. But then oil and gasoline peaked and the economy was "off to the races," he said.
The industrials are all "roaring back," and the money is coming from stocks that are not going to work over the next three months. Market players are going to sell the
( WWY) and the
and are going to buy companies like Eaton and Grainger, Cramer said.
"A stock like
has gigantic upside, whereas the upside in
is almost nonexistent," he said.
( SGP) and
Johnson & Johnson
, both of which Cramer owns for his charitable trust,
Action Alerts PLUS, "just keep powering higher and higher, and it's not too late to get in," he said.
Liz Loses Love
( LIZ) recently announced that it has hired a pharmaceutical executive to run its apparel business, said Cramer.
And according to Cramer, this means one thing: "Buy
He said he has been backing VF Corp, Liz's competitor, for several years "because of its ability to take brands that are boring, slow or in need of a renovation -- or could grow, and VF-izing them."
Although VF Corp never seems to get cheaper, Cramer said he doesn't believe that the stock will pull back. When there is "such disarray at a major competitor," people should buy the competitor without the turmoil, which in this case, is VF Corp.
"The biggest competition to stocks is cash, which could be more of a king if the economy heats up," said Cramer.
However, there are some stocks that are "movers," and these can make people some mad money, he sad.
The bears have two cases. First, "the market is dramatically overbought, meaning it has been up huge in a straight line," Cramer said. And second, people can no longer assume that there will not be a rate hike.
"The astonishing decline in oil and gasoline, coupled with the sense that the worst may be over in housing" is what's shaking the confidence that the
is done raising rates.
But even though there are people who believe the economy is too strong, Cramer doesn't believe that the market is done going up.
"We are in the homestretch of the year, and there are people in the homestretch that don't want to sell their stocks in the year-end," he said. "No one wants to sell stocks, but people want to own them."
This week there will be a down day, but it should be viewed as an opportunity to get into stocks, Cramer emphasized.
reported a "disappointing" number and said it is not satisfied with its performance, "it is not indicative of the other banks that trade," Cramer told a caller.
This, however, may be indicative of
, he said. But it still does not dent his thesis that these stocks are OK, he stressed.
"If you ask me which business looks like Wachovia, it's
," Cramer said. "And if Washington Mutual gets hit, I am going to tell you to buy it."
"We are in a golden era for financials."
Cramer told another caller that even though he has made money with
Advanced Micro Devices
, it's down 16% for the year.
He said he believes that
is going to report "a fine number," which will lift other companies, including AMD.
Responding to his next caller, Cramer suggesting owning
, even if it's just one share.
, which he owns for his charitable trust,
Action Alerts PLUS, is down, he said.
If people haven't bought it yet, he suggested getting into it, even if it's just two shares.
At the time of publication, Cramer was long Sears, Schering-Plough and Johnson & Johnson.
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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