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Cramer: Nighty Night for 'Nightmare' Stocks?

CNBC's Jim Cramer is encouraged by the composition of the current rally, in which U.S. markets look to trade higher for a 10th-consecutive session. He said unlike past "bubble" rallies, the market is being led by companies representing real commerce, instead of "inflation stocks" that he called "a nightmare."

"[The market] is once again transport-driven," Cramer said in a nod to the Dow Theory in which strength in transports is a bullish sign for manufacturing. On "Squawk on the Street," Cramer said moves like this make older investors "feel better because it's such bedrock, it represents commerce. They've been a leader, and that makes a good impression on the rest of us."

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"Materials haven't performed that well, but when you go back to the 2007-2008 advance, what led us?" Cramer asked. He listed Peabody, Cliffs Natural, Alcoa, Freeport McMoran, Potash and Agrium.

"I don't want those stocks doing well, and they're not, because, boy, are they ever a nightmare. You get US Steel putting on 100 points, when you get AK Steel being a leader, that's what happened last time," he said. "I love this leadership, it's not those companies."

"I just don't want us to be led by a company like Chesapeake, like Apache, because those are inflation stocks," Cramer said, adding that he likes the market dynamic where a relative boom in energy is keeping a lid on inflation, "which makes the dollar stronger for good reasons, not bad."

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"I still like the backdrop of the economy more than most. I was gratified that Procter cooled yesterday, that Kimberly cooled. These stocks have had too much of a run, and it's time for others to join in and that's what I started to see happen yesterday."

"If this market were being led every day by the same stocks, then we would feel, I think, very 2007-2008," he said. "Each day someone comes to the fore and surprises you."

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul

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