For the past month, Jim Cramer has been educating investors about a gigantic sea-change of stocks. He warned investors to take advantage quickly, as portfolio managers did not yet see it happening.
Guess what? Now they do.
The "Mad Money" host saw that the rally on Thursday was a signal that money managers have caught on to the rotation of investors out of domestic stocks such as the retailers, restaurants and railroads, and into international companies with headquarters in the U.S.
"I feared that when these money managers realized that they were out of position, just like a pro football defender who's covering the wrong guy, their moves would be vicious and punitive for the domestic stocks and heavenly for the internationals. That's exactly what is going on," Cramer said.
Here is Cramer's secret to profiting from this rotation: Take the pain. If you own some of the stocks that have been beaten down in the rotation, take the pain for the next few days.
The good news is that Cramer thinks it is still early in the game for international stocks, so there is still time to profit from the rotation. He sees the best opportunity in the technology, drug and consumer packaged goods industries.
A few stocks he recommended for examination are IBM, Eaton, PPG and Dow Chemical, as these are all stocks that could roar on a weaker dollar. Additionally, the three most logical tech stocks are Apple, Google and Facebook. They have all stalled out recently on good quarters, and Cramer thinks the estimates are too low for them because of currency headwinds.
In particular, Cramer recommended Visa as one of the strongest stocks in the game right now.
"Remember, rotations are vicious. We don't know when they'll end. We don't even know whether the dollar will stay weak or Europe will continue to be strong. Nevertheless, I believe in the sea change, and I think these moves will keep going."