Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
This rally came out of nowhere, Jim Cramer told his Mad Money viewers Tuesday. Even with increased chatter of an imminent Federal Reserve rate hike, stocks refuse to go down thanks to a number of positive catalysts, Cramer said.
What are the catalysts? Cramer said rising oil prices is one. As is the continued strength of the U.S. dollar. Add to those a pickup in mergers and acquisitions and soaring new home sales and it's easy to see why Monsanto (MON) rose 3.1% and homebuilder Toll Brothers (TOL - Get Report) increased by 8.7% today.
But Cramer said the real strength has been in technology, with Action Alerts PLUS holding Cisco Systems (CSCO - Get Report) up 1.9% and Applied Materials (AMAT - Get Report) up 3% on signs of real demand for its products.
Rumors of strong demand for Apple's (AAPL - Get Report) iPhone are great news for this AAP holding, as well as for all of the component makers including NXP Semiconductor (NXPI - Get Report) , another holding, and Qualcomm (QCOM - Get Report) , which finished the day up 2%.
Cramer said that tons of groups are helping propel the market higher but, make no mistake, technology is in the lead.Off the Charts
In the "Off the Charts" segment, Cramer checked in with colleague Robert Moreno to review the charts in the oil patch after a strong rally in recent weeks. Readers may recall that Moreno was bullish on the oil stocks back in February, but he now feels the rally may be overdone.
Shares of Exxon Mobil (XOM - Get Report) have rallied 11% since Moreno's bullish call in February, but today he noted that both the MACD oscillator and the Chaikin money flow indicators are flattening. Also, the percentage price oscillator, the difference between moving averages as a percentage of the larger one, is also signaling that Exxon is due for a pullback.
Pioneer Natural Resources (PXD - Get Report) broke out to the upside in February, but has since hit a ceiling of resistance at $168 a share. Moreno said this stock must clear that resistance before it can head higher.
Finally, Moreno looked at Schlumberger (SLB - Get Report) , an Action Alerts PLUS name. After displaying a bullish inverse head-and-shoulders pattern, the stock now displays a normal head-and-shoulders, signaling that it's time to move on.
What to Make of Athletic Stocks
What should investors make of the athletic stocks Nike (NKE - Get Report) , Under Armour (UA - Get Report) and Foot Locker (FL - Get Report) ? Do these stocks trade on which shoes athletes are wearing? On who wins the playoffs? Is Under Armour's 15-year deal with UCLA for $280 million a good one?
Cramer said when so many questions pop up in a given sector, it's time to take a pause. This group, he admitted, has simply become too hard to figure out. That means these companies are in "show me" mode, and must once again prove they're worthy of our investments.
Cramer was not pleased with any of the recent earnings from these companies, and many investors share that view. When shareholders are itching to leave a stock, that's never a good time to invest, he concluded.Executive Decision: Marc Casper
For his "Executive Decision" segment, Cramer sat down with Marc Casper, president and CEO of Thermo Fisher Scientific (TMO - Get Report) , an Action Alerts PLUS holding that's up 6% so far in 2016 and trades at 17 times earnings.
Casper said genomics has become a big area for Thermo Fisher and many customers see his company's equipment as essential for the work being done. He said the technology in this area is getting better and better and we should see some real breakthrough science.
Thermo Fisher has partnered with the CDC and world health organizations to combat the Zika virus, Casper explained, and he's encouraged by the work being done to both test for and eventually treat this growing problem.
Casper is also bullish on China, Thermo Fisher's second-largest market, which accounts for 7% of revenue. He said the company has 4,000 colleagues working with customers in China and Thermo Fisher is now the largest life science company in the region, creating the scale to excel.
Thermo Fisher is also shareholder friendly, having bought back $1 billion of its own stock and keeping $12 billion on hand for mergers and acquisitions.
Cramer called Thermo Fisher a "great story."
In the Lightning Round, Cramer was bullish on Taser International (TASR) , Alexion Pharmaceuticals (ALXN - Get Report) , Nvidia (NVDA - Get Report) , Nordic American Tanker (NAT - Get Report) , Smith & Wesson (SWHC) , Medivation (MDVN) and Delta Air Lines (DAL - Get Report) .
Did You Miss the Boat on Consol?
Cramer said Consol was simply a coal producer until 2010, when the company paid up big to diversify into natural gas. While the move likely saved the company from bankruptcy, it put tremendous strain on its balance sheet, sending shares down 90% over 18 months from 2014 through 2016.
But since its lows Consol has been aggressively turning itself around, adding board members, selling assets and even suspending its dividend to strengthen its balance sheet. The moves have been praised by Wall Street, but Cramer said given the political uncertainty surrounding coal the stock is too risky to consider buying at these levels.
The time to buy Consol was four months ago, Cramer concluded.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.