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Cramer: 6 buyable themes in second half

(Click for video linked to a searchable transcript of this Mad Money segment)

With both the Dow Jones industrial average and S&P 500 setting record highs on the first trading day in the new quarter, how should you put money to work?

Jim Cramer believes the price action in Tuesday's market is sending an important message for investors. He says it reflects broad themes that are working; and because they're working on the first day of trade, he thinks they should endure for a while. That's because, "Historically, I've found that stocks that bound out of the gate on the first day of a quarter, more often than not, stay strong at least around the first turn of a three-month period," Cramer said.

Therefore, as you look for new opportunities, Cramer suggests noting what did well on Tuesday and then visiting those themes, strategically.

Here's what's on Cramer's radar:

Jim Cramer on Mad Money.
Adam Jeffery | CNBC
Jim Cramer on Mad Money.

1. Big biotech: Cramer said strength in this sector on Tuesday was generated by a renewed interest in growth and earnings that aren't yet priced into stocks.

Cramer's favorite plays remain his so-called four horsemen of biotech; Gilead, Celgene, Regeneron and Biogen, all of which closed higher on Tuesday. "Yes, I believe biotech is coming back, and when it's back it doesn't just inch up, it roars!"

2. Cars: With most major automakers reporting better-than-expected sales in June, Cramer finds the sector intriguing broadly. However, he's particularly interested in GM, which finished the session higher, after it bucked Wall Street's expectations and reported a modest rise in sales. "Sure the drumbeat of recalls continues," said Cramer, "but the sentiment surrounding GM stock has changed dramatically. What will sales be like when GM stops recalling cars?"

Cramer also cited Harman as another way to leverage the trend. "It's the brains behind the stereo and infotainment systems in so many different kinds of cars. I think Harman's $3 move on Tuesday could be the beginning of the stock's next leg up."

3. Internet plays: Cramer thinks the market is warming to Internet stocks and views the price action in Priceline as a "tell." "Priceline had been marking time because people thought, wrongly, that it was paying too much for OpenTable. That's how it could rally $43 on Tuesday, like the old days."

4. Old tech: Cramer has been saying for some time that he believes older tech names would return to favor. Looking back at the last quarter, "Micron was the third biggest gainer and SanDisk was eighth. Going forward, I can see IBM, Seagate and Western Digital all catching the old tech craze bug. That means they could do some serious damage to the short-sellers that keep betting against them." All of the aforementioned stocks closed in the green on July 1.

5. Airlines: "Whether it was the higher price of fuel or worries about a consumer slowdown, this group had taken a well-earned rest. But they're not sleeping anymore. Delta, American and Southwest all burst higher on Tuesday. Going forward, I think this group will be loaded with positive surprises."

6. Super momentum stocks: In the quarter ahead, Cramer expects the cloud stocks to again emerge as a leadership group. "I'd look at the usual suspects here: Workday, ServiceNow, Concur, and Salesforce.com, all of which ended Tuesday in the green."

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Read more from Mad Money with Jim Cramer
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Cramer's potential positives into second half
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"I know it seems like you missed these moves already, but history says you haven't," Cramer noted. Of course, an unexpected turn of events could change everything, but all things remaining equal, "I would exploit these themes, especially when we get the inevitable pullback a few days into this new quarter."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Symbol
Price
 
Change
%Change
DJIA
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S&P 500
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GILD
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CELG
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REGN
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BIIB
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GM
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HAR
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PCLN
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3O9
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MU
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SNDK
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IBM
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STX
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WDC
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DAL
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AAL
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LUV
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WDAY
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NOW
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CNQR
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CRM
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