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Feb.13

10:56 AM ET

Wednesday, 13 Feb 2008

The Return of the Bulls?

Posted By:Tom Brennan

Topics:Agriculture | Warren Buffett | Stock Picks | Stock Market

Sectors:Oil and Gas | Aerospace & Defense

The Dow closed up 133 points Tuesday, signaling what might be the return of Cramer’s five favorite bull markets, he told viewers during Mad Money.

Aerospace, minerals and mining, oil and oil service, agriculture and infrastructure all made moves today, fueled by traders who seem to think either the possibility of a U.S. recession is waning or the effects of one wouldn’t matter much to the rest of the world. If that’s the case, these five sectors are all worth owning, Cramer said.

Here’s the Mad Money host’s breakdown on each, and why they jumped:

Boeing’s [BA Loading... () ] repeated delays in delivering the 787 Dreamliner have been weighing down the whole aerospace sector. But these stocks finally got some breathing room after management’s announcement that shipments of the eagerly awaited jet would commence on schedule – a blessing for the whole industry, Cramer said.

A coal shortage and a copper rally is boosting BHP Billiton [BHP Loading... () ] and Freeport-McMoRan [FCX Loading... () ] in the minerals and mining space. Cramer also recommended that investors keep an eye on Cleveland Cliffs [CLF Loading... () ], adding that he doesn’t expect the company to be independent for long.

Potash [POT Loading... () ] CEO Bill Doyle kicked off an agriculture conference with what Cramer called an “extremely bullish interview” on CNBC's Fast Money. And momentum traders kept things moving when the stock pushed through its 52-week high. Deere [DE Loading... () ], though, is Cramer’s fave in the group. His only word of caution is to watch for a brief ag stall-out on the next down day. It will give investors the chance to buy these names on the cheap before they surge again.

Bear Stearns upgrading Schlumberger [SLB Loading... () ], XTO Energy [XTO Loading... () ] reporting strong earnings, and oil futures climbing all proved oil’s in bull mode.

CLICK FOR THE REST OF TUESDAY'S SHOW:

And lastly, infrastructure got a bump from Warren Buffet’s offer to save the bond insurers. Municipalities can’t fund infrastructure projects without selling bonds, Cramer said, and that can’t happen without insurance. So Buffet’s offer to backstop munis was just what infrastructure stocks needed to go higher.

Of course, these gains could be lost in a heartbeat, Cramer admitted. But this move can continue until the market’s less oversold, he said, and investors start to overtake short-term traders.

Jim's charitable trust owns Freeport-McMoRan and XTO Energy.

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