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It was a coalition of buyers that created today's improbable rally, Jim Cramer told his Mad Money viewers Wednesday, after a 7% slide in the averages at the open turned into a surprising 1.4% rally by the close. Who were these buyers that made up this unlikely coalition? Cramer listed them out.
The first group of buyers were those that have been patiently waiting for the election to be over. There were just too many questions and too much uncertainty for them to invest, Cramer said, so these buyers just stayed on the sidelines until today.
The second cohort of buyers included those waiting to see a smooth transition of power, something that happened quite quickly once the votes were tallied.
The third group of buyers have been waiting for Trump the businessman to arrive, someone willing to spend big on things like infrastructure. These buyers bid up shares of Martin Marietta Materials (MLM) and Vulcan Materials (VMC) by 11.5% and 9.8% respectively.
Still other buyers included those who simply got the election all wrong -- short sellers expecting a Clinton win and who were betting against the banks and pharma stocks. Other investors saw opportunities for companies to repatriate their overseas cash hoards.
Finally, Cramer said, the last set of buyers includes those who hope Trump can stand up to our trade partners, boosting many sectors including the steel stocks.
Take Another Look At Health-Care Stocks
Following last night's stunning election results, we're dealing with a different stock market, Cramer told viewers. And that means re-rating a host of sectors. The most obvious changes will be in the health-care sector, where the Republicans aren't likely to follow Hillary Clinton's planned path of Congressional inquiries and executive actions to keep prices in check.
After being beaten down for months, the health-care stocks are now dirt cheap, Cramer said, but that doesn't mean that every stock is a winner.
CVS Health (CVS) plummeted 12% Tuesday after the company reported, and Cramer said that Valeant Pharmaceuticals (VRX) remains "toxic." Investors should also avoid stocks like AmerisourceBergen (ABC) , which is in the middle of a vicious price war.
That leaves Merck (MRK) , with its 2.7% yield, as one of the best bets in the sector, Cramer said, noting the company leads in next-generation cancer therapies. He was also a fan of Pfizer (PFE) with its 3.7% yield.
Turning to biotech, Cramer continued to recommend Celgene (CELG) , which is growing sales at 27%. He said "something good is happening" at the company. He was also bullish on Allergan (AGN) -- the fastest growing company, with the lowest multiple in the industry.
Finally, Cramer recommended Walgreens Boots Alliance (WBA) , which posted excellent earnings this quarter.