The Dow Jones Industrial Average has been doing terrific but the Nasdaq hasn't been doing quite as well over the past few weeks.
While the Nasdaq's 2% gain since the presidential election isn't bad, it certainly lags the near 8% gain of the Dow, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, pointed out CNBC's "Stop Trading" segment Thursday.
Industrial stocks, including General Motors (GM) , Deere (DE) and Caterpillar (CAT) , are doing great even though the business is just OK. At the same time, great tech companies are doing really well, while their stocks aren't necessarily reflecting that at the moment.
While market rotation is indeed healthy -- selling a good tech company like Nvidia (NVDA) for a not-as-good Deere, for example -- at some point there needs to be balance, Cramer said.
This type of divergence can't last forever, he explained. It would be nice for the Nasdaq to stabilize and perform better to boost investors' overall confidence, Cramer reasoned.
On Thursday, the Nasdaq is down about 0.7% while the Dow up roughly 0.3%.