The industrial stocks are getting beaten down for all the wrong reasons, Jim Cramer told his Mad Money viewers Monday, but if investors want to stick with what's working, then they definitely need to be in tech.
The tech sector continues to be on fire, now entering its seventh week of gains, led by Micron Technologies (MU) , which rallied 8.7% on an upbeat research report with a $100 price target on the stock.
For years, Micron was known as a commodity chipmaker, but this time, things really are different, as the company is a key player in all of the hottest sectors of our economy. Shares of Western Digital (WDC) were also strong, up 3.3% on the day. Cramer said he still remains a fan of both names, as well as Intel (INTC) .
As for what not to buy, Cramer said that would be the industrials, where investors continue to fret that President Trump's steel tariffs won't be his last. Those fears sent shares of United Technologies (UTX) and Caterpillar (CAT) lower, as well as Boeing (BA) , which fell by 2.9%.
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Cramer's Pick for the White House
In the quest to replace White House economic adviser Gary Cohn, Cramer said that his colleague and former co-host, Larry Kudlow, would be an excellent choice.
Cramer said that Kudlow is both a hardline free trade advocate but also a thoughtful, respectful gentleman and a patriot. Kudlow would bring institutional knowledge that's sorely needed at the White House. Cramer added that Kudlow would do his very best to usher in an era of fair trade and he's possibly our nation's best bet to rally our allies against China's illegal dumping around the globe.
On Real Money, Cramer explains why he thinks Larry Kudlow could change how the White House thinks about economics. Get more of Cramer's insights with a free trial subscription to Real Money.
Cramer Crowns the 'Cloud Kings'
When you identify a powerful theme, find the winners and stick with them, Cramer told viewers, as he announced his seven "cloud kings" in the cloud computing space. Each of these names have been on fire, Cramer said, up between 17% and 30% from their lows on Feb 9.
First up was Adobe Systems (ADBE) , the creative software giant that's still seeing 25% sale growth with its new subscription pricing. Next was Salesforce.com (CRM) , a company frequently featured on "Mad Money" and which has many ways to engage with the cloud.
ServiceNow (NOW) also made Cramer's list, as this company helps others reduce labor costs by digitizing their operations in the cloud.
Executive Decision: Splunk
For his "Executive Decision" segment, Cramer sat back down with Doug Merritt, president and CEO at Splunk, a stock that was up 62% in 2017 and is up almost 30% so far in 2018.
Merritt explained that as more and more companies aim to be data driven in their decision making, the market opportunity for Splunk continues to grow. He said Splunk helps companies understand their data and is packaging their services for the shortest time to value
In areas like data compliance, Splunk can help companies by telling them what data they need to monitor, then helping them build the metrics and dashboards they need to stay in compliance and have better visibility into their operations overall.
Merritt said he's also very excited about their four acquisitions over the past 12 months, saying that their latest deal, for Phantom Cyber, was a perfect fit for their operation.
Cramer said there's a reason by Splunk is a member of his cloud royalty.
Executive Decision: Workday
In his second "Executive Decision" segment, Cramer sat down with Aneel Bhusri, co-founder and CEO of Workday, another member of Cramer's cloud royalty, with shares up 36% so far in 2018.
Bhusri said for most of its history, Workday has been known as a human capital management provider, but this quarter was a real tipping point, he said, with more and more Fortune 500 companies adopting their second pillar of cloud finance software.
Workday is not just for banks, however. The company has plenty of government, education and healthcare clients as well. Bhusri said he's very excited about their Prism Analytics offering, which allows healthcare providers to integrate third party data, like patient outcomes, with their accounting systems to see which procedures are providing the best outcomes for patients.
When asked about competition, Bhusri explained that while many companies are married to legacy systems, more and more are realizing the benefits of the modern cloud architecture and are bringing in Workday to make the transition as easy as possible.
Cramer was bearish on Kindred Healthcare (KND) .
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