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Tonight's episode of Mad Money was shortened due to President Obama's press conference.
NEW YORK (TheStreet) -- When pro football players get caught offsides, they pay a penalty. When professional money managers get caught on the wrong side of the trade, you get a market rotation. That's was Jim Cramer's explanation to his Mad Money viewers Thursday for how the markets could end the day so strong.
Cramer explained that for months now money mangers have been fleeing Europe and investing in anything and everything domestic. But now, with so much good news coming out of Europe, it's hard for even the skeptics not to admit that things are improving there. It's that notion that's finally caught many portfolio managers on the wrong side of the trade.
That explains why Kohl's (KSS), a domestic retailer, saw its stock plummet 13% on a soft quarter. It's also why Nike (NKE), an international apparel maker, is seeing its shares rise steadily while rival Under Armour (UA), largely a domestic company, is seeing its shares tank.
So how should investors play this move? Cramer ran down a laundry list of international stocks that he felt are gearing up for big moves higher. That list includes Eaton (ETN) and Boeing (BA), along with Pepsico (PEP) and Caterpillar (CAT). It includes defense names Lockheed Martin (LMT) and even tech stocks Apple (AAPL), Facebook (FB) and Google (GOOGL), three stocks Cramer owns for his charitable trust, Action Alerts PLUS.