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Cramer: 6 groups in fabulous bull market mode

Cramer: 6 groups in fabulous bull market mode
VIDEO11:1611:16
Cramer: 6 groups in fabulous bull market mode

Even when the market is sedentary, Jim Cramer knows there is always something else brewing under the surface.

He was inspired when he looked through the charts of thousands of stocks over the weekend, and discovered six groups in bull market mode that he would buy into — barring any shocking news from the Federal Reserve on Wednesday.

"What I look for are unassailable trends, just fabulous looking charts that are filled with pulchritude … and let you know en masse what is working and what is not after this four-week rally in the stock market," the "Mad Money" host said.





When you are buying a strong group that is filled with great charts, you are buying stocks with the wind at their backs.
Jim Cramer
A Home Depot store in Laguna Hills, California
Scott Mlyn | CNBC

The most predominant group was the utilities, which are all on fire. It didn't matter which one was bought, but Cramer considered the best to be American Electric Power, Consolidated Edison and Dominion.

The second group was the auto repair shops and parts retailers, as they are benefitting from the trend of people holding their cars for longer periods of time. With the average age of a car on the road now up to 12 years, Cramer added that this is why O'Reilly Automotive, Genuine Parts and Autozone have all done so well.

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The third sector screaming to be bought were steel stocks. Ever since the government introduced a stiff tariff on Chinese steel at the beginning of the month, this group has been bullish.

"I think this move, which has allowed the stocks of US Steel and AK Steel to double, has mostly run its course, although the staying power of the speculative steel names is pretty amazing here," Cramer said.

The next group was unexpected for Cramer. The medical device stocks have been on the rise with Stryker, Zimmer Biomet, Bard and Cramer's favorite, Edward Lifesciences, all roaring.

The fifth group blazing a trail was the food sector. Cramer thinks these stocks are benefiting from the dramatic decline in commodity prices as the ingredients, packaging and transportation of goods all require fuel.

He's got his eye on Coca-Cola and PepsiCo, too.

"Here is a cohort that is so ridiculously strong you can assume there has to be both impending consolidation and a spur related to the embrace of natural and organic products," Cramer said.

The last red-hot group Cramer found was related to the home, just not homebuilders. The good news is that he thinks it can still be exploited without too much risk, though the Fed does pose a hazard.

Cramer focused on Home Depot and RPM International. He will also be watching Stanley Black & Decker and Newell-Rubbermaid.

"When you are buying a strong group that is filled with great charts, you are buying stocks with the wind at their backs," Cramer said.

So with a Fed meeting in sight that could cause a sell-off, Cramer recommended for investors to keep these groups in mind — and pounce at a market-wide pullback.

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