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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.
Currency headwinds blunted the earnings of all these companies, Cramer concluded, but now that Europe is on the rise, likely taking China with it, these companies have everything to gain as investors swap out of the domestic restaurant and retail names and back into these once-hated sectors.
Executive Decision: Udi Mokady
For his "Executive Decision" segment, Cramer sat down with Udi Mokady, president and CEO of CyberArk Software (CYBR), the cyber security provider that's up 284% since the company's initial public offering in September.
Mokady explained that when it comes to security, the bulk of the investment companies have made has been in keeping the bad guys out. But what happens once the bad guys get in? For many companies, once a hacker gets on the inside, there's little to stop them.
That's why CyberArk focuses on privileged accounts, those that administrators use to manage a company's network. The CyberArk platform locks, monitors and records everything these administration accounts do and alerts any suspicious behavior instantly.
That focus have proved successful for CyberArk, as the company now calls 40% of the Fortune 100 their customers. But Mokady noted that its not just technology that matters, it's people as well. That's why CyberArk is very selective with its employees, often hiring ex-military personnel with security clearances.
Cramer told viewers to read up on everything CyberArk is doing because cyber threats are only increasing in numbers and severity every day.
In the Lightning Round, Cramer was bullish on Cisco Systems (CSCO), Wells Fargo (WFC), Gray Television (GTN), Netflix (NFLX), Skyworks Solutions (SWKS), Avago Technologie (AVGO), Qorvo (QRVO), Cypress Semiconductor (CY) and Cummins (CMI).
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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