is "powering" the
, Jim Cramer said on his
"RealMoney" radio show Tuesday.
Jerry York is working for GM and turning it around, Cramer said. Although Kirk Kerkorian's Tracinda, which has a major investment in GM, is arguing that the turn at GM is short term, management is saying the turn is long term. But what matters is that there's a turn either way, he said.
This company was at a point where six months ago people thought it was going bankrupt, but not anymore, Cramer said. It has had a "remarkable run, and it's not done leading the Dow even higher."
"GM's near-term earnings will be better than expected, and that's what propels stocks higher," he said.
Although the stories in the media today may try to shake market players out of GM, Cramer believes that people should not listen to these stories and instead should "get in the stock that is powering the Dow higher."
In addition, financials, technology stocks and retailers are all going up, he said.
"This is what a good rally looks like, and we're not done," Cramer said, adding that the oils will also have their day, but not yet.
Oil is coming down as are all commodity sales, he said. Gold is "plummeting," and aluminum is "cratering," as is oil.
"The amazing thing is that it doesn't matter what you do if you produce a commodity." Cramer said. "These stocks are all trading the same way regardless of the company."
, a stock Cramer owns for his charitable trust,
Action Alerts PLUS, announced that it's doubling its reserves, and the stock is still down.
is cheap here, but no one cares, even though copper is not in short supply, Cramer said.
is another stock down "hideously," said Cramer, who believes that Freeport will go all the way back to $43. The stock was recently trading at $50.50.
"This is the wholesale destruction of commodities," Cramer said. "But somewhere in here there is opportunity and a chance to buy."
Devon is a company that will get a bid, Cramer said, adding that he would be a buyer of Devon and a seller of
Meanwhile, in the tech world, though some companies are doing well and some are doing badly, the stocks are moving up, he said.
However, Cramer, who believes that not everything tech should be going up, says that the best area in technology is the gadget space.
could go higher, he said. And
are also cheap stocks and should keep going up.
You Can Touch This
One reason why this market is going higher is because private equity players believe that stocks are cheap, said Cramer.
Meanwhile, analysts keep insisting that people can't touch this market because it's too expensive, he said.
"The bears want you out of this market and on the sidelines," Cramer said. "Their goal is to keep you from making money."
They don't care that interest rates are low or that earnings will be up because of the decline in oil and gas, he went on to say.
"Given the so-called overvaluation, what should be happening, rationally, is that companies are offering stock to take advantage of it," Cramer said.
Instead, executives such as Gary Loveman of
and Richard Kinder of
are saying they are "sick and tired of seeing their stocks out of whack with the fundamentals" and are starting to "take matters into their own hands," Cramer said.
On Monday Harrah's received a buyout proposal from two private equity firms,
Texas Pacific Group
, to purchase the casino operator for $81 a share, which Harrah's is reviewing.
Cramer believes that Loveman, a former Harvard Business School professor, knows what he's talking about, as does Kinder. And because these men know their business well, Cramer believes that their points have to be considered in any discussion about the "overvaluation" of stocks.
Cramer has been telling his listeners that there is a time where he will like oil again and that he believes this could take place in the next two or three weeks.
Oil Service HOLDRs
is the best indicator of this group, he said.
Because Cramer believes that we could be at a bottom soon, and it "could happen like lightning," he needs people to be there when it happens.
"I feel the worst thing that could happen to oil is happening -- we have no hurricanes and no demand with bountiful supply," he said. "We are in the business of watching oil collapse."
There will come a point when people will have to buy oil, and that point is close, Cramer went on to say.
"We are a lot closer to a bottom than a top."
is one of those stocks that people do not understand," said Cramer.
and Nintendo are all putting out new hardware, and when you have new hardware, you need new software, Cramer said.
"GameStop is the single best way to play the change in hardware," he said.
, which Cramer owns for his charitable trust,
Action Alerts PLUS, is "very cheap" and has a good pipeline, he told his next caller.
In addition, Schering's CEO Fred Hassan is Cramer's favorite chief executive in this group. Schering's fundamentals are good, but if the company cannot turn itself around, it will get taken over or merge with another company, he said.
Responding to his next caller, Cramer said
is a best-of-breed stock.
"The company is a double-digit grower across the board" and "has been able to cross-sell from one area to another," he said.
When a caller asked about
, Cramer said that retail is "strong as a horse."
Although Kohl's is up, he said he would still buy 50 out of 100 shares of the stock now.
"If you want to buy a stock that is going to have good numbers underneath it, it would be Kohl's," Cramer told the caller.
At the time of publication, Cramer was long Devon Energy and Schering-Plough.
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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