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  1. Home
  2. / Investing
  3. / Basic Materials

Cramer: This Rally Is Just the Reverse of the Selloff

It is tech that really is screaming to be noticed.
By JIM CRAMER Aug 22, 2017 | 10:35 AM EDT
Stocks quotes in this article: FCX, ADBE, CRM, MU, LRCX, FB, AMZN, NFLX, GOOGL, TOL, COTY, MDT

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 Salesforce.com (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.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long FB, GOOGL.

TAGS: Investing | U.S. Equity | Basic Materials | Technology | Earnings | Markets | How-to | Jim Cramer | Risk Management | Stocks

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Dividend Investors Listen Up: We Are Living in a Materials World

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Oct 29, 2021 11:00 AM EDT

Give your portfolio some credit and see which of these materials companies gets your interest: BHP Group, Dow Inc. or LyondellBasell.

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