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NEW YORK ( TheStreet) -- Most government statistics don't mean a thing to the stock market, Jim Cramer told his Mad Money viewers Tuesday. But when you get a gross domestic product number as robust as we received today, well, that's hard to ignore.
Cramer said money managers will see today's GDP number as a sign to buy, buy, buy, which makes the perfect stock for this moment Kimberly-Clark (KMB) . Why Kimberly? Because when you buy diapers, you're buying an oil-based product that just got a lot cheaper to source, make and ship to consumers. You also get a company with big profits and dividend protection.
A robust economy is also a big win for retailers like Costco (COST) , Cramer noted, along with winners like Restoration Hardware (RH) and Walgreens (WAG) , a stock Cramer owns for his charitable trust, Action Alerts PLUS and which just reported its first good quarter in ages.
Cramer was also bullish on restaurants such as AAP holding Starbucks (SBUX) and Popeyes Louisiana Kitchen (PLKI) , along with non-residential construction plays such as Honeywell (HON) and Eaton (ETN) , another AAP stock.
Cramer's only words of caution were for the energy sector, as oil continues to find a bottom, and biotechs, which are falling victim to increased price competition.
Off the Charts
In the "Off The Charts" segment, Cramer went head to head with colleague Dan Fitzpatrick to determine how much lower the biotech sector can fall on the heels of Gilead Sciences' (GILD) near 11% decline in recent days due to increased price competition.
Using a daily chart of the iShares Nasdaq Biotech ETF (IBB) , Fitzpatrick noted the group's astounding leadership so far this year, up 29% and a full 42% from its April lows.
But Fitzpatrick cautioned the biotech stocks are at a crucial level, having fallen back to their 50-day moving average. If this level fails to hold, then $294 will be the next key level to watch, with only $261, the exchange-traded fund's 200-day moving average offering any floor of support below that.
Looking at a weekly chart, Fitzpatrick noted just three pullbacks since 2012 that approached the 40-week, or 200-day, moving average. The 200-day has been a terrific buying opportunity; unfortunately, that level is still 11% lower from where we are today.
Cramer agreed with Fitzpatrick, saying that if the 50-day average holds then it would be time to buy back into this group. But if the 40-day average fails, there's a long, long way to go before the next level of support comes into play.