Cramer: This Rally Is Just the Reverse of the Selloff

 | Aug 22, 2017 | 10:35 AM EDT
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Where have these buyers been, and what were they waiting for? That's what I always feel is the case when we have these oversold rallies.

Now, there have been some buyers the whole time in the commodities sector. Just keep watching Freeport McMoRan (FCX) , which is making the breakout of all breakouts. (Here's a technical look at that, from Bruce Kamich).

But it is tech that really is screaming to be noticed. The Adobe (ADBE) launch here, coupled with what could be a very strong quarter from (CRM) Tuesday night, could ignite the cloud.

I think that Micron Technologies (MU) and Lam Research (LRCX) are making a move that could indeed matter a great deal as they have failed repeatedly.

Then there's the reversion to FANG -- Action Alerts PLUS holding Facebook (FB) , Trifecta Stocks name Amazon (AMZN) , Netflix (NFLX) and Google parent Alphabet (GOOGL) -- that matters. They've been drifting, drifting, drifting -- and all of a sudden, they explode to the upside.

I also have been waiting for the industrials to come back to life, given what we have seen from Freeport. That's a positive, and it is good to see that the banks can rally on a few basis point move up in interest rates.

What's most amazing? The rally has nothing to do with earnings. People aren't too excited about Toll Brothers (TOL) -- peak housing, blah blah blah -- there's nothing to write home about, other than scathing letters, on this Coty (COTY) call and Medtronic (MDT) , such an important company, disappointing for all to see.

A rally based on what?

Nothing more than what the selloff was based on, except the technicians that have been looking for rollovers might be disappointed.

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