Get Set for Next Rotation Off Blowoff Thursday
04/07/06 - 08:48 AM EDT
Jim Cramer
It felt blowoff Thursday. Felt blowoff for the golds and the coppers. The way that people abandoned anything that has secular growth for the new "secular growth" plays like minerals has all the feel of shorts and longs throwing in the towel and realizing that they simply can't beat the averages with an Amgen(AMGN Quote - Cramer on AMGN - Stock Picks) or a Celgene(CELG Quote - Cramer on CELG - Stock Picks).
Sure, there were some compromises: Aerospace and defense remain on the buy list, for certain. In the chaos that was that slowdown at Parker Hannifin(PH Quote - Cramer on PH - Stock Picks), aerospace orders was the one bright spot. Of course, anything oil remains a buy, too. We see Exxon(XOM Quote - Cramer on XOM - Stock Picks) putting off valid projects because it can't get enough rigs! Think National Oilwell Varco(NOV Quote - Cramer on NOV - Stock Picks), please. We see Citgo/Lyondell(LYO Quote - Cramer on LYO - Stock Picks) putting up a refinery and we know it will get billions, which will then revalue the refinery complex. Schlumberger(SLB Quote - Cramer on SLB - Stock Picks) is so popular that it has become the big-cap market darling, just like it was in 1980-1983. The perennial graphics chips and Internet weapons stories still work. But the money is so viciously flowing out of the quality growth stock names that, to me, you just have to buy some. Filtration and optical plays (touch screens, touch monitors) remain strong, too, as we learned from 3M(MMM Quote - Cramer on MMM - Stock Picks) Thursday. Earth movers are in bull-market mode, even as hydraulics seemed a tad weaker from Parker Hannifin. So Cat(CAT Quote - Cramer on CAT - Stock Picks) stays strong.
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